Akbank T.A.S Signs a USD 700 Million Equiv. ESG-Linked Syndicated Term Loan Facilities

2 Min | 13 April 2022

Akbank T.A.Ş ("Akbank" or the "Bank"), the leading private sector bank in Turkey, is pleased to announce the successful signing of its 367-day US$342,500,000 and €329,300,000 Sustainability Linked Term Loan Facilities on 12 April 2022.

Dubai, UAE, 13 April 2022: Akbank T.A.Ş (“Akbank” or the “Bank”), the leading private sector bank in Turkey, is pleased to announce the successful signing of its 367-day US$342,500,000 and €329,300,000 Sustainability Linked Term Loan Facilities on 12 April 2022.

Proceeds of the facilities will be utilized for Akbank’s trade finance purposes, including refinancing of the existing debt. The Facilities include sustainability-linked margin adjustments whereby the Margin will be determined according to Akbank’s performance against the selected KPIs over the life of the Facilities.

The Facilities incorporate two KPIs pertaining to replacement of Credit PVC cards with rPVC cards and electricity consumption from renewable sources which are aligned to Akbank’s overall sustainability strategy.

Despite of market volatility amid geo-political conditions, the transaction received a strong response from the market, receiving an oversubscription over the initial size of US$660mn, representing a rollover ratio of 1.08x. Owing to oversubscription, Akbank choose to close the facilities at US$700mn.

Transaction is joined by 32 institutions across the world, including from North America, Western Europe, Asia and the Middle East. The success of the deal underscores the strength of Akbank’s banking relationships and credit strength as well as the market’s acknowledgement of Akbank’s sustainability efforts.

Abu Dhabi Commercial Bank PJSC, Bank of America, Emirates NBD Capital Limited, ICBC Turkey Yatırım Menkul Değerler A.Ş. and Standard Chartered Bank acted as Joint Coordinators & Bookrunners on the transaction. Bank of America also acted as Documentation Agent, and Mizuho Bank acted as Facility Agent.

Banks

Coordinators
Abu Dhabi Commercial Bank PJSC, Bank of America, Emirates NBD Capital Limited, ICBC Turkey Yatırım Menkul Değerler A.Ş. and Standard Chartered Bank

Sustainability Coordinators
Bank of America, Emirates NBD Capital Limited and Standard Chartered Bank

Bookrunners & Mandated Lead Arrangers:
Abu Dhabi Commercial Bank PJSC, Bank of America, Emirates NBD Capital Limited, ICBC Turkey Yatırım Menkul Değerler A.Ş., Standard Chartered Bank, Citibank N.A., London Branch, Deutsche Bank AG, London Branch, ING Bank N.V., J.P. Morgan Securities plc, Mizuho Bank, Ltd., SOCIETE GENERALE, Sumitomo Mitsui Banking Corporation, London Branch

Lead Arrangers
BNP Paribas, Commerzbank Aktiengesellschaft, Filiale Luxemburg, HSBC Bank Middle East Limited, mBank S.A., MUFG Bank, Ltd.

Arrangers
ABC International Bank plc, Bank of China Limited, Grand Cayman Branch, Barclays Bank PLC, Bper Bank Luxembourg S.A., CaixaBank, S.A., Credit Suisse AG, London Branch, Doha Bank Q.P.S.C., DZ Bank AG, Goldman Sachs International Bank, HBL Bank UK Ltd, Habib Bank Limited, Bahrain (Wholesale Branch), Mashreqbank psc, Morgan Stanley Senior Funding, Inc., Union De Banques Arabes ET Françaises (UBAF), Zürcher Kantonalbank

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