TSKB Secures USD 192 Million Sustainability-Linked Syndicated Loan
Industrial Development Bank of Turkey (TSKB) secured a syndicated loan worth USD 192 million from a total of 14 banks representing 11 different countries. Having signed its second sustainability-linked syndicated loan agreement, TSKB will continue to contribute to the national economy through the funds it has secured.
Following the ground breaking ESG Risk Rating linked club loan, which marked a first in Turkey, it has obtained in November last year, TSKB has renewed its conventional syndicated loan this year by integrating sustainability criteria as well. The loan agreement was signed on July 8.
The Sustainability Linked Syndicated Loan was extended in two tranches; USD 55 million and EUR 116 million, with the participation of 14 banks, 4 of which were new participants, from 11 different countries in Europe, America, Asia and the Middle East. The syndicated loan has a maturity of 367 days and an annual interest rate of 175 basis points. The roll-over ratio was 130%. The loan was coordinated by Commerzbank AG, with BNP Paribas and Standard Chartered Bank acting as the Sustainability Coordinators, and participated by ABC International Bank plc, BNP Paribas, Commerzbank AG, The Commercial Bank (P.S.Q.C.), Citibank N.A., Doha Bank, Erste Group Bank AG, Goldman Sachs International Bank, ING Bank NV, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Banka Kombetare Tregtare Sh.a., Intesa Sanpaolo S.p.A. and Raiffeisen Bank International AG.
TSKB CEO Ece Börü commented on the syndicated loan. “Following a period of almost 1.5 years spent in the shadow of the pandemic, the foundations of fundamental changes in the business and manufacturing worlds continue to be laid. In the first months of this challenging process, we obtained a syndicated loan of USD 150 million last year. Then, in the second half of the year, we broke new ground in sustainability in our country and obtained a new club loan linked to Bank’s ESG Risk rating. I think the sustainability-linked syndicated loan we signed this year is highly valuable for our country's economy. We are happy to reinforce our role in the sustainable and inclusive development of our country and to continue to support the companies we cooperate with through the international funds we offer. We would like to thank all the institutions that are part of our borrowing as part of this loan for their participation and their confidence in our bank. In the coming period, we will continue to use our balance sheet structure diversified with our innovative borrowing transactions to support the economy in line with sustainable and inclusive development.”
Strengthening its sustainability funding structure through climate, environment and social development themed loans secured from international financial institutions and development finance institutions as well as innovative debt instruments, TSKB aims to provide USD 8 billion until 2030 towards the Sustainable Development Goals set forth by the United Nations. Between 2021 and 2025, TSKB prioritizes keeping the share of SDG linked loans within the total portfolio above 90%.
