The Asian Banker Wednesday, 24 July 2024

Akbank signs $600M sustainability-linked term loan

5 min read

Akbank T.A.Ş (Akbank), the leading private sector bank in Turkey, is pleased to announce the successful signing of its 367-day $265.5 million and EUR 318.45 million ($338 million) sustainability-linked term loan facilities on 26 October 2023. Proceeds of the facilities will be utilised towards its general trade finance purposes, including refinancing.

Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Standard Chartered Bank and The Commercial Bank (P.S.Q.C.) acted as joint coordinators and bookrunners on the transaction.

Additionally, Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation acted as joint sustainability coordinators on the transaction.

Emirates NBD Capital Limited also acted as documentation agent, and Emirates NBD Bank (P.J.S.C.) acted as facility agent.

Following strong global demand from 36 institutes from America, Europe, Asia and the Middle East, the facilities were oversubscribed to 168x from the original launch amount. Akbank choose to scale back and signed the facilities at $600 million, being 146x of the launch amount, post scale back. With this transaction, the success of the deal underscores the strength of Akbank’s banking relationships and credit strength as well as the market’s acknowledgment of Akbank’s sustainability efforts.

Akbank also achieved to squeeze the all-in price by 75 bps p.a. from its April 2023 transaction, demonstrating strong liquidity support and trust in Akbank and Turkish banking industry.

The facilities are sustainability linked and will cover disclosure of the decarbonisation strategy for financed emissions and an increase in the aggregate amount of renewable energy loan made available by the borrower under its Sustainable Finance Framework published in 2023.

Akbank defined four key ESG areas to focus on which are most relevant to the stakeholders and to the business aligned with Sustainable Development Goals and the transition to a low-carbon economy. Supported by Akbank’s strong financial performance and effective governance structure, the four key areas are: sustainable finance; ecosystems management; climate change; people and community.

Akbank has set solid long-term targets, which includes providing TL 200 billion sustainable loan financing until 2030 as well as sustainable investment funds reaching TL 15 billion until 2030. Akbank aims to become a net zero bank by 2050. In addition, Akbank aims to be a carbon-neutral bank through eliminating operational emissions until 2025. In the context of the recent earthquakes that have affected eleven cities in Turkey, Akbank has also committed to provide TL 650 million for the re-development of the area and for the survivors to rebuild their lives.

Re-disseminated by The Asian Banker

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