$55m EBRD loan to Garanti BBVA will boost Turkish SMEs
The European Bank for Reconstruction and Development has agreed a $55 million loan to Turkish lender Garanti BBVA.
The EBRD financing, which will be channelled predominantly to Turkish small and medium-sized enterprises hit by the COVID-19 outbreak, is complemented by a $50 million loan from the International Finance Corporation.
In addition, Garanti BBVA has raised $594 million from international commercial banks. For the first time, the financing will be linked to Garanti BBVA’s sustainability practices. As part of the syndication agreement, the bank is committing to no longer financing greenfield power plants, as well as sourcing 80% of the electricity it consumes from renewable sources.
Meeting or outperforming these targets will enable Garanti BBVA to obtain a margin benefit, while falling short of the commitments will lead to a penalty.
