Akbank T.A.S Signs USD 600 Million Equiv Sustainability-Linked Term Loan Facilities

3 Min | 26 October 2023

Dubai, UAE, 26 October 2023 : 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$265,500,000 and €318,450,000 Sustainability-Linked Term Loan Facilities on 26 October 2023 (“Facilities”). Proceeds of the Facilities will be utilized towards its general trade finance purposes, including refinancing.

Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Standard Chartered Bank and The Commercial Bank (P.S.Q.C.) acted as Joint Coordinators & Bookrunners on the transaction. Additionally, Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation acted as Joint Sustainability Coordinators on the transaction.

Emirates NBD Capital Limited also acted as Documentation Agent, and Emirates NBD Bank (P.J.S.C.) acted as Facility Agent.

Following strong global demand from 36 institutes from America, Europe, Asia and the Middle East, the Facilities were oversubscribed to 168x from the original launch amount. Akbank choose to scale back and signed the Facilities at US$ 600 Million, being 146x of the launch amount, post scale back. With this transaction, the success of the deal underscores the strength of Akbank’s banking relationships and credit strength as well as the market’s acknowledgment of Akbank’s sustainability efforts.

Akbank also achieved to squeeze the all-in price by 75 bps p.a. from its April 2023 transaction, demonstrating strong liquidity support and trust in Akbank and Turkish Banking industry.

The Facilities are sustainability linked and will cover disclosure of the decarbonisation strategy for financed emissions and an increase in the aggregate amount of renewable energy loan made available by the Borrower under its Sustainable Finance Framework published in 2023.

Akbank defined 4 key ESG areas to focus on which are most relevant to the stakeholders and to the business aligned with Sustainable Development Goals and the transition to a low-carbon economy. Supported by Akbank’s strong financial performance and effective governance structure, the 4 key areas are: Sustainable Finance; Ecosystems Management; Climate Change; People & Community.

Akbank has set solid long-term targets, which includes providing TL 200 billion sustainable loan financing until 2030 as well as sustainable investment funds reaching TL 15 billion until 2030. Akbank aims to become a net zero bank by 2050. In addition, Akbank aims to be a carbon-neutral bank through eliminating operational emissions until 2025. In the context of the recent earthquakes that have affected eleven cities in Turkey, Akbank has also committed to provide TL 650 million for the re-development of the area and for the survivors to rebuild their lives.

Banks:

Sustainability Coordinators:
Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation, London Branch

Mandated Lead Arrangers & Bookrunners:
Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, ING Bank N.V., MUFG Bank, Ltd., Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, London Branch and The Commercial Bank (P.S.Q.C.)

Lead Arranger:
J.P. Morgan Securities plc

Arrangers:
Bank of America Europe DAC, HSBC Bank Middle East Limited, Deutsche Bank AG, London Branch, Bank of China Limited, Grand Cayman Branch, Citibank N.A., Abu Dhabi Global Markets Branch, Intesa Sanpaolo S.p.A., ABC International Bank plc, Habib Bank Ltd., Societe Generale, Commercial Bank of Kuwait K.P.S.C., Attijariwafa Bank Europe, Barclays Bank PLC, Commerzbank Aktiengesellschaft, Habib Bank AG Zurich, UniCredit Bank AG, Citibank N.A., London Branch, The National Bank of Ras Al Khaimah (P.S.C.), The Bank of New York Mellon, Nomura International plc, Byblos Bank Europe SA, Absa Bank Limited, Goldman Sachs International, Banca UBAE S.p.A., International Bank of Azerbaijan OJSC, Raiffeisen Bank International AG, British Arab Commercial Bank PLC, Mashreqbank PSC and Rabitabank OJSC

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