Türkiye Vakıflar Bankası T.A.O. signs ~ USD 870 million equivalent Dual Currency Sustainable Term Loan Facilities

3 Min | 17 December 2024

Dubai, UAE, 17 December 2024: Türkiye Vakıflar Bankası T.A.O. (“Vakifbank” or the “Bank”), the second largest bank in Türkiye in terms of asset size since YE2020, is pleased to announce the successful signing of its 367-day USD 518,500,000 and EUR 331,400,000 Sustainable Term Loan Facilities on 25 November 2024 (“Facilities”). Proceeds of the Facilities will be used to finance convenient sustainable operations, assets, and projects, such as sustainable business finance, as defined in the VakıfBank Sustainable Financing Framework.

Abu Dhabi Commercial Bank PJSC and Emirates NBD Capital Limited acted as Joint Co-ordinators, Mandated Lead Arrangers & Bookrunners on the transaction.

Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, ING Bank N.V. and Mashreqbank PSC acted as the Sustainability coordinators for the transaction.

Emirates NBD Capital Limited also acted as Documentation Agent, and Abu Dhabi Commercial Bank PJSC acted as Facility Agent.

Following strong global demand from 45 institutes from America, Europe, Asia, Middle East and Africa, the Facilities were oversubscribed to over 166% from the original launch amount. Vakifbank choose to scale back and signed the Facilities at USD 870 million equivalent., with this transaction, the success of the deal underscores the strength of Vakifbank’s banking relationships and credit strength as well as the market’s acknowledgment of Vakifbank’s sustainability efforts despite.

VakıfBank updated its Sustainable Finance Framework in 2023 which was first created in 2020. The framework has been aligned with the International Capital Market Association’s (ICMA) Green and Social Bond Principles and Sustainability Bond Guidelines and Loan Market Association’s (LMA) Green and Social Loan Principles.

Within this scope, VakıfBank determined its asset pool for the use of proceeds of the Sustainable Financing Instruments issued under this framework towards financing eligible green and/or social loans which meet the green and social eligibility criteria. In addition, VakıfBank intends to issue allocation reports of the net proceeds of Sustainable Financing Instruments annually and demonstrates all the loans compliant with VakıfBank’s eligibility criteria as outlined in the Sustainable Finance Framework with 3 years lookback period.

As a bank integrating the sustainability approach to all of its operations and applications, VakıfBank also integrated use of proceeds format with its sustainability-themed syndication loan of November 2024. Hereupon, VakıfBank has opted to continue in a sustainable use of proceeds format for its syndication loans due to the enhanced focus on increasing its sustainable asset book and directly supporting projects with an environmental and/or social benefit.

Banks:

Sustainability Coordinator:

Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, ING Bank N.V. and Mashreqbank PSC

Coordinators:

Abu Dhabi Commercial Bank PJSC and Emirates NBD Capital Limited

Mandated Lead Arrangers & Bookrunners:

Abu Dhabi Commercial Bank PJSC, Citibank, N.A. ADGM Branch, Commercial Bank of Dubai PSC, The Commercial Bank (P.S.Q.C.), Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch ING Bank N.V., Mashreqbank PSC, Mizuho Bank, Ltd., MUFG Bank, Ltd., MUFG Bank Turkey A.Ş., Qatar National Bank (Q.P.S.C.) Paris Branch, Societe Generale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, London Branch

Lead Arranger:

J.P. Morgan Securities plc

Arrangers:

Deutsche Bank AG, London Branch, DOHA BANK Q.P.S.C., Commerzbank Aktiengesellschaft, Invest Bank P.S.C., National Bank of Umm Al Qaiwain PSC, ABC International Bank plc, Habib Bank Ltd. (Bur Dubai Br.), CaixaBank, S.A., Banca UBAE S.p.A., Habib Bank AG Zurich, UAE, Barclays Bank PLC, Byblos Bank Europe SA, BCP Bank (Mauritius) Ltd., "Demir Kyrgyz International Bank" CJSC, Habib Bank Limited, Singapore Branch, The National Bank of Ras Al Khaimah (P.S.C), Erste Group Bank AG, Goldman Sachs International, MBH Bank Plc., Habib Bank Limited, Bahrain, Isbank AG, Banka Kombëtare Tregtare Kosovë Sh.A., Kentbank d.d., OYAK ANKER Bank GmbH, Bper Bank Luxembourg S.A., British Arab Commercial Bank PLC, ”AZER-TURK BANK” OJSC and Kapital Bank OJSC

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