Sustainable Debt

Allocation and Impact Report 2022

Index

  1. OVERVIEW
  2. YAPI KREDI SUSTAINABLE FINANCE FRAMEWORK
  3. SUSTAINABLE DEBT ISSUANCE
  4. ELIGIBLE LOAN PORTFOLIO AND ALLOCATION SUMMARY
  5. IMPACT REPORTING
  6. CALCULATION METHODOLOGY
  7. INDEPENDENT LIMITED ASSURANCE REPORT

OVERVIEW

As one of the leading financial institutions in Turkey, Yapı Kredi believes it has a role to play in low carbon transition and a sustainable future for the society. Sustainable finance, climate crisis and environment, risk management and corporate governance, and human and society are four of the major pillars of Yapı Kredi's sustainability strategy. In this respect, guided by the United Nations Sustainable Development Goals (SDGs), Yapı Kredi aims to increase and expand its sustainable product portfolio, strengthen green industries and manage its environmental and social impacts. Yapı Kredi supports its clients with its financial solutions to facilitate implementation of sustainable business models and transition strategies.

Yapı Kredi believes that economic sustainability cannot be achieved without social and environmental sustainability, therefore its sustainability approach is integral and comprehensive. While managing its impact on environment and society, Yapı Kredi also aims to contribute to sustainable development of society and transition to a low carbon economy.

Yapı Kredi embraces a distinctive business model that aims at sustainable profitability and the long-term social and economic benefit of communities it serves, striving to create value for all stakeholders in line with its sustainability approach.

In 2021, Yapı Kredi published its Sustainable Finance Framework that outlines its issuances of sustainable finance instruments aligned with 2021 version of green and social bond principles of International Capital Markets Association (ICMA) and Loan Market Association (LMA). By releasing the Sustainable Finance Framework, Yapı Kredi demonstrated its aim to create a positive impact on sustainable development.

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YAPI KREDI SUSTAINABLE FINANCE FRAMEWORK

Yapı Kredi believes that sustainable financing instruments are an effective tool to channel investments to projects that have demonstrated climate and social benefits and thereby contribute to the achievement of the Sustainable Development Goals set out by the United Nations. By issuing sustainable financing instruments, Yapı Kredi intends to align its funding strategy with its mission, sustainability strategy and targets.

In 2021, Yapı Kredi published its Sustainable Finance Framework based on the Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines (SBG) of International Capital Markets Association (ICMA) and Green Loan Principles (GLP) and Social Loan Principles (SLP) of Loan Market Association (LMA). Under this Framework, Yapı Kredi intends to issue green, social, sustainability finance instruments, which may include bonds (including private placements), commercial paper, loans and promissory notes to finance and/or refinance green and social loans with a positive environmental and social benefit.

Yapı Kredi's Sustainable Finance Framework has four core components. For each sustainable finance instrument issued, Yapı Kredi asserts that it will adopt (i) Use of Proceeds (ii) Process for Project Evaluation and Selection (iii) Management of Proceeds and (iv) Reporting, as set out in this Framework. The Yapı Kredi Sustainable Finance Framework also follows the recommendations of the Green and Social Bond Principles regarding External Review.

Yapı Kredi allocates an amount equal to the net proceeds of the sustainable finance instruments to an eligible loan portfolio of new and existing green and social loans (Eligible Loan Portfolio) in accordance with its Sustainable Finance Framework. The eligible loans are to be funded in whole or in part by an allocation of an amount equal to the proceeds from the sustainable finance instruments.

For further information, Yapı Kredi's Sustainable Finance Framework and its Second Party Opinion can be found here.

Eligible Green Project Categories

SDGs

Renewable Energy

Green Buildings

Clean Transportation

Energy Efficiency

Eligible Social Project Categories

Access to Essential Healthcare Services

Access to Essential Education Services

SME Financing

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SUSTAINABLE DEBT ISSUANCE

As of December 31, 2022, Yapı Kredi has issued one green bond and four sustainable future flow transactions under our Diversified Payment Rights program. Approximately USD 382 million of the proceeds is dedicated to support green, social and sustainable assets in accordance with the Bank's Sustainable Finance Framework.

Green Bond

Issuer

Yapı ve Kredi Bankası A.ẞ.

ISIN

XS2104914069

Listing

Euronext Dublin

Type

Green Bond

Issue Date

21.01.2020

Maturity Date

10.12.2024

Amount

USD 50,000,000

Allocation as of

%100

31.12.2022

Sustainable DPR

Issuer

Yapı ve Kredi Bankası A.ẞ.

ISIN

-

Type

Sustainable DPR1

Issue Date

17.12.2021

Maturity Date

Varying between

5 to 8 years

Amount

USD 331,610,000

Allocation as of

%100

31.12.2022

1. DPR transactions are unlisted and private and therefore have been included as a total.

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Disclaimer

Yapi ve Kredi Bankasi AS published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 11:40:11 UTC.