Turkish banking institution Garanti BBVA has completed a $125 million sustainable subordinated bond issuance backed by a consortium comprising the International Finance Corporation (IFC) and German development finance institution DEG.
The 10-year Tier II bond, which includes a call option exercisable from the fifth year, marks Garanti BBVA’s return to the subordinated debt market and introduces a new capital structure model for the bank’s international funding operations.
Proceeds from the issuance will reinforce the bank’s regulatory capital base while expanding specialized lending pools across two primary sustainability verticals:
- Green transition financing: Directing capital toward micro, small, and medium-sized enterprises (MSMEs) for eligible green investments, including electric vehicle adoption, energy-efficient machinery, and industrial technology upgrades.
- Social impact lending: Expanding credit availability and financial access specifically tailored for women-led businesses and entrepreneurs across Turkey.
Atıl Özus, Executive Vice President for Finance and Treasury at Garanti BBVA, stated that the transaction diversifies the bank’s capital funding channels while strengthening long-term liquidity partnerships with international financial institutions.
Sinem Edige, Executive Vice President at Garanti BBVA, noted that the facility aligns with the bank’s holistic transition strategy, providing targeted capital to smaller commercial entities navigating low-carbon operational shifts and structural market changes.
Momina Aijazuddin, Regional Director at the IFC, and Gudrun Busch, Senior Director at DEG, emphasized that strengthening Garanti BBVA’s capital structure accelerates inclusive economic growth and energy transition financing across Turkey’s commercial enterprise sector.
