Sunday, 16 June 2024

İşbank obtains a $915M sustainability-linked syndicated loan

5 min read

İşbank has signed a sustainability-linked syndicated loan deal with a 367-day maturity with the amount of EUR 411 million ($452.3 million) and $465 million.

The transaction reached a total amount of $915 million, making it the highest syndicated loan obtained in the Turkish banking sector in the second half of the year.

The facility agreement was signed on 21 November 2023. Emirates NBD Capital Limited, Standard Chartered Bank, First Abu Dhabi Bank PJSC and The Commercial Bank (P.S.Q.C.) acted as joint-coordinators, while Sumitomo Mitsui Banking Corporation, ING Bank N.V., Mashreqbank psc, and Standard Chartered Bank acted as joint-sustainability coordinators, and Emirates NBD Bank (P.J.S.C.) as the agent bank.

With 17 new participants, 44 banks in total from 23 countries across the Americas, Europe, the Middle East, and Asia participated in the facility, which will be used for general trade finance purposes. The all-in cost of the syndicated loan for the highest participating ticket size is EURIBOR + 3.25% for the Euro tranche and SOFR + 3.50% for the USD tranche.

In connection with the sustainability aspect of the syndicated loan, sustainability performance criteria have been set, one being the amount of cash loans to be extended to small and medium-sized women entrepreneurs and the second being the amount of consumer loans to be extended in 11 cities affected by the earthquake.

Re-disseminated by The Asian Banker

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