İşbank’s 100th Year Bill Breaks Record in Green Bill Public Offering

İşbank's “100th Year Bill", the country's first green bill issued to commemorate the Bank's centennial, commenced trading with a ceremonial gong event at Borsa İstanbul.

By issuing green bills worth TL 4.5 billion in Turkish Lira, the Bank has taken a significant stride in green transformation and environmental responsibility, further solidifying its pioneering role in advancing Türkiye's capital markets.

The 126-day maturity transaction, set to mature on August 26, 2024, the Bank's 100th anniversary, has also been noted as the largest public offering of green debt instruments in the history of Turkish financial markets. 

Due to investors' high demand of TL 7.7 billion, the initial issue size of İşbank's 100th Year Bill, announced at TL 3 billion nominal, was raised to TL 4.5 billion nominal.  Individual investors oversubscribed the public offering with a nominal demand of TL 4.8 billion, while institutional investors showed strong interest with a nominal demand of TL 2.9 billion. 

Attracted demand 1.7 times higher from approximately 50 thousand investors

İşbank's 100th Year Bill, the first green issuance through the public offering method in the sector and the largest simultaneous public offering of debt instruments, attracted demand 1.7 times higher from approximately 50 thousand investors.   

The public offering of the 100th Year Bill marked a milestone with the integration of İşCep, İşbank's acclaimed mobile application, which significantly contributed to broadening investor participation nationwide.  On a quantitative basis,  84% of investor IPO requests were facilitated through İşbank's digital platforms. 

“Echoes our history of groundbreaking initiatives such as piggy banks and investment accounts"

During his address at the gong ceremony, İşbank CEO Hakan Aran said, “A century ago, İşbank led the way in fostering a savings culture with piggy banks, pioneering the concept of investment accounts, expanded access to capital markets through ATMs, and introducing İş Investment to the financial landscape. Our issuance of green bills, piggy banks, and investment accounts on the Bank's centenary echoes our history of groundbreaking initiatives." 

“The bill underscores the capital markets' ability to engage grassroots investors and a diverse range of participants"   

Aran emphasized that during thebook-building period, the lowest limit was set at TL 1,000, and he noted that 15 thousand investors requested this minimum amount, adding, “I consider this particularly significant as it enables the participation of small savers in the capital markets. We initially aimed for TL 3 billion. The regulations permitted us to increase the rate by 50% based on the demand. We raised it and reached TL 4.5 billion. We are pleased to announce that we received a total of TL 7.7 billion in demand from approximately 50 thousand investors. The considerable portion of demand facilitated via İşCep, along with the participation of 15 thousand investors with TL 1,000, and the notable presence of 15 percent young individuals aged 20-30 among them, underscores the 100th Year Bill's and the capital markets' ability to engage grassroots investors and a diverse range of participants.  I perceive the bill as a manifestation of the savings culture that originated a century ago with piggy banks in our country, now extending into the capital markets. May it bring prosperity to us all." 

 The funds generated from the issuance of the “100th Year Bill" will be allocated to finance loans for green projects.  Additionally, a sapling will be donated to TEMA in the name of each investor taking part in the IPO.