Türkiye Is Bankasi : İşbank Successfully Secures a Sustainability-Linked Syndicated Term Loan Facility worth EUR 483 million and USD 257 million

İşbank Successfully Secures a Sustainability-Linked Syndicated Term Loan Facility worth EUR 483 million and USD 257 million

Türkiye İş Bankası A.Ş. ("İşbank") has signed its third 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 483 million tranche and a USD 257 million tranche.

The Facility Agreement was signed on June 7, 2022. Bank of America Europe Designated Activity Company ("Bank of America"), Standard Chartered Bank, Emirates NBD Bank PJSC and Abu Dhabi Commercial Bank PJSC acted as Joint Coordinators, while Bank of America, Standard Chartered Bank and MUFG Bank Ltd 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 + 2.10% for the Euro tranche and SOFR + 2.75% for the USD tranche. The Facility will be used for general trade finance purposes. In total 32 banks from 16 countries across America, Europe, the Middle East and Asia, participated in the Facility.

As part of the third sustainability-linked syndicated loan secured by İşbank, sustainability-linked performance criteria were also 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.

İşbank had met the performance criteria on reducing the carbon emissions and increasing renewable energy use and the ratio of disabled-friendly ATMs to the total number of ATMs in respect of the preceding two sustainability-linked syndicated loans. İşbank has further expanded its good practices in the field of sustainable finance with the new deal.

İşbank Deputy CEO and Sustainability Leader Gamze Yalçın said: "We believe in the importance of expanding our sphere of influence on all stakeholders in our ecosystem, especially our customers, with our transformative power arising from our position as a financial institution. With this transaction, in which we have determined performance criteria by considering both our environmental and social impact, we offer another example of our responsible banking approach. Within the framework of our sustainability vision, which we have internalized with our corporate culture, we have internationally committed to support the transition to a carbon-free economy, and joined the Net-Zero Banking Alliance (NZBA) in 2022. This deal amounting to EUR 483 million and USD 257 million is the third sustainability-linked syndicated loan of our Bank." Yalçın finished her remarks by stating: "As Turkey's largest private bank in terms of asset size, İşbank will continue to contribute to the development of the national economy by supporting the financing of foreign trade transactions of its customers operating in the real sector."

10.06.2022