İşbank secures sustainability-linked syndicated loan of EUR 388.3 million and USD 224 million

İşbank has signed a syndicated loan deal on a 367-day maturity worth EUR 388.3 million and USD 224 million for its new sustainability-linked syndication transaction. 

For the loan agreement signed on June 6, 2023, Abu Dhabi Commercial Bank PJSC, Emirates NDB Capital Limited and Standard Chartered Bank acted as coordinator, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank as sustainability coordinator and Emirates NBD Bank (P.J.S.C) as agent bank. 
 
The all-in cost of the syndicated loan, which is participated by 33 banks from 16 countries across America, Europe, the Middle East and Asia, for the highest participating banks was 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.
 
The sustainability performance criteria for the syndicated loan secured by İşbank in connection with sustainability have been set as the amount of cash loans to be extended to small and medium-sized women entrepreneurs and the amount of consumer loans to be extended in 11 cities affected by the earthquake. If the targets set for these criteria are fulfilled, the interest rate on the loan will be reduced. 
 
"Sustainability-themed sourcing is an integral part of our strategic goals"
 
In her statement on the subject, Gamze Yalçın, Deputy CEO and Sustainability Leader at İşbank stated that they considered sustainability-themed sourcing as an integral part of their strategic goals and said, “We emphasize once again the importance we attach to the issue with our new sustainability-linked syndicated loan. Through our new syndicated loan, we aim to make a permanent contribution to the recovery in the region affected by the earthquake disaster, the pain of which is still fresh for our country."
 
Emphasizing that İşbank considers increasing women's participation in business life as one of the requirements of sustainable development, Yalçın went on to say, "In line with the principles in the Declaration of Women's Empowerment we published in March 2023, we aim to contribute to the strengthening of women's status in society and their role in the economy. Supporting the financing of our customers’ foreign trade transactions with the new resources amounting to EUR 388.3 million and USD 224 million that we have brought to our country’s economy, we will continue to increase our positive impact in social sphere through the performance criteria we have set.”