TSKB has once again led the way in Türkiye with another first: ESG-Rating Linked Club Loan

1 December 2020
- 3 min Read

Rated as the top bank in Türkiye and among the top banks globally for its ESG (Environmental, Social and Governance) Risk Rating, TSKB has signed ESG-Rating Linked Loan agreement with the participation of 4 banks from 4 different countries including ING Bank N.V. as the Sole Sustainability Coordinator and Documentation Agent. TSKB will obtain better loan pricing through its endeavor to improve the Bank’s ESG Risk Rating as a reflection of its sustainable and inclusive development agenda for the Turkish economy.

Türkiye's first private development and investment bank, Turkiye Sinai Kalkinma Bankasi (TSKB) as the Borrower has signed the first ESG-Rating Linked Loan agreement in Türkiye with the participation of 4 banks including ING Bank N.V. having the role of the Sole Sustainability Coordinator and Documentation Agent, BNP Paribas, Standard Chartered and Sumitomo Mitsui Banking Corporation.

TSKB was rated among the top banks for its ESG performance with an ESG Risk Rating of 16.7 points under the Low Risk category by international sustainability rating agency Sustainalytics. The Bank has executed another innovative product for its funding based on this score which evaluates sustainability performance of TSKB in all dimensions.

TSKB’s existing ESG Risk Rating implies that the risk of experiencing material financial impacts due to the ESG factors is low. TSKB, ranked 6th out of 372 banks on the global scale and the 1st among Turkish banks with its ESG Risk Rating, aims even further improvement of its ESG Risk Rating. Under this new loan structure, margin of the loan will adjust and will be reduced if TSKB improves its ESG Risk Rating.

“We are committed to further improve our sustainability performance and continue the strong management of ESG Risk components”

Ece Boru, CEO of the Bank, has expressed; as a bank that has focused on its sustainable and inclusive development banking mission for the past 70 years, how delighted TSKB is in being the first Turkish bank signing an ESG Linked Club Loan: “We are very happy that our Bank’s strong and successful management of material ESG issues is once again recognized given its score and ranking. Our Bank, which is in long-lasting cooperation with the world’s distinguished banks, will surely scale up its goals while enhancing its ESG Risk Rating score. We foresee carrying out new deals that are built upon similar structures like our ESG-Rating Linked Loan. We aim for eliminating climate related risks through the investments we finance. To this end, our efforts will continue to ramp up our collaborations with the state, NGOs, and universities, in addition to our existing broad shareholder base. We attach great importance for the banks to work together in order to deliver financing that prevents climate change and protects our natural resources.