📋 Tender Overview
Location:
Türkiye
Project number:
55185
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
BE
Approval date:
11 Sep 2024
Status:
Signed
English-language PSD published:
04 Dec 2024
Project Description
The Bank has invested USD 75 million under Türkiye GEFF II framework in a USD 750 million Basel III compliant Tier-2 ("B3T2") bond issued by Türkiye Garanti Bankasi A.S. ("GB"), a commercial bank incorporated in Türkiye. The bond is publicly offered and listed on the Irish Stock Exchange.
Project Objectives
The project will support GB in further strengthening its capitalisation, via decreasing capital sensitivity to TRY exchange rate volatility as well as supporting its funding diversification strategy, ultimately contributing to the resilience of the overall Turkish banking sector. Furthermore, GB will allocate 210% of EBRD`s investment amount to projects which meet the GET eligibility criteria, in line with the Türkiye GEFF II Framework. GB will finance sub-borrowers implementing green economy investments in a gender responsive way, including, among others, energy efficiency, renewable energy and climate resilience measures, and additional green investment areas focusing on nature and biodiversity, blue economy, as well as sustainable agriculture, transport and tourism.
Transition Impact
ETI score: 71
The Project will contribute to Green and Resilient transition impact qualities.
Green: The project supports the EBRD's Green transition quality and Green Economy Transition ("GET") approach in Türkiye, through GB allocating a multiple of the EBRD investment amount to finance GET-eligible projects.
Resilient: The project also contributes the Resilient transition quality by supporting GB in strengthening its capitalisation as well as decreasing its capital sensitivity to TRY exchange rate volatility, ultimately contributing to the resilience of the overall Turkish banking sector.
Client Information
TURKEY GUARANTEE BANK INC.
GB is a private commercial bank incorporated in Türkiye. It is one of the largest banks in Türkiye with the consolidated assets of EUR 77bn, and c. 9.4% market share at 3Q24. GB provides a wide range of financial services to its over 27 million customers with total 22,370 employees including subsidiaries through an extensive distribution network of 797 domestic branches, 8 foreign branches, 7 in Cyprus and one in Malta, and 1 international representative office. Spanish Banco Bilbao Vizcaya Argentaria S.A. is GB`s majority shareholder, with a 85.97% stake. GB`s remaining 14.03% shares are publicly traded on Borsa Istanbul.
EBRD Finance Summary
USD 75,000,000.00
Total Project Cost
USD 832,500,000.00
Additionality
Additionality of the Project stems from the financing structure: EBRD financing has been a valuable contribution to a successfully executed issuance. Also, the investment plan includes 210% of the EBRD funds to be alloca
