İşbank Secures a Sustainability-Linked Syndicated Term Loan Facility worth EUR 330.5 million and USD 191 million

​İşbank has signed its new Sustainability-Linked Dual Tranche Dual Currency Term Loan Facility Agreement (the “Facility Agreement” or “Facility”). The Facility has a maturity of 367 days comprising of a EUR 330.5 million tranche and a USD 191 million tranche. 

The Facility Agreement was signed on November 17, 2022. Bank of America and Standard Chartered Bank acted as Joint Coordinators, while Bank of America, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation acted as Joint Sustainability Coordinators. Emirates NBD Bank (P.J.S.C.) served as the Facility Agent with Bank of America also acting as Documentation Agent on the transaction.

The all-in cost of the syndicated loan for the highest participating ticket sizes is EURIBOR + 4.00% for the Euro tranche and SOFR + 4.25% for the USD tranche. The Facility will be used for general trade finance purposes. In total 28 banks from 17 countries across America, Europe, the Middle East and Asia, participated in the Facility. 

As part of the sustainability-linked syndicated loan secured by İşbank, sustainability-linked performance criteria were determined with the margin subject to adjustment depending on İşbank’s performance with respect to the sustainability performance targets. The sustainability performance targets were determined with respect to (i) the ratio of disabled-friendly ATMs to the total number of ATMs and (ii) paper savings to be achieved through digitized processes.  

In her statement on the loan, Gamze Yalçın, Deputy CEO and Sustainability Leader at İşbank, said, “We consider our sustainability-themed funds as an integral part of our initiatives in this area and once again emphasize the importance we attach to the issue through our new sustainability-linked loan. Through this deal, we will continue to increase our positive environmental and social impact through the performance criteria we set, while supporting the development of the Turkish economy by financing our customers’ foreign trade transactions with the new funds amounting to EUR 330.5 million and USD 191 million.”