VakıfBank Secures $870 Million Sustainability-Focused Syndicated Loan

Foreks - VakıfBank (IS:VAKBN) has secured a total of $870 million in sustainability-themed syndication loans, comprising $518.5 million and €331.4 million from the participation of 45 banks across 25 countries. The dollar cost of the 367-day loan is SOFR + 1.75%, while the euro cost is Euribor + 1.50%.

VakıfBank has continued to maintain its pioneering position in the international markets and in sustainability-themed financing through the resources obtained from abroad. Most recently, it successfully completed a 367-day syndication transaction totaling $870 million.

"The renewal rate was 133%,"

Since the beginning of the year, VakıfBank has raised $10.2 billion in new resources from international markets and succeeded in renewing its second syndication loan of the year at a rate of 133%. Regarding the transaction, VakıfBank's General Manager, Abdi Serdar Üstünsalih, stated, "This transaction once again demonstrates our bank's commitment to sustainable financing goals and the confidence in our country in international markets. We received nearly $1.1 billion in demand for our transaction, and in return, we renewed our syndication loan at a value of $870 million. In this specific transaction, the number of banks participating at the highest level increased from 8 last year to 15 this year, clearly indicating the success of this transaction and VakıfBank's strong position in the international arena. Furthermore, 12 new banks from a wide geography including the Middle East, Far East, Europe, Asia, and Africa, which did not participate in the same period last year, joined this transaction." Üstünsalih emphasized that the cost of the loan has decreased by 75 basis points for both currencies compared to May 2024, settling at SOFR + 1.75% for the dollar portion and Euribor + 1.50% for the euro portion.

"With this transaction, the total of our sustainability-themed syndication loans has reached $1.8 billion. Thus, our bank becomes one of the banks with the highest amount of foreign borrowing while also being among those with the highest syndication balance," Üstünsalih noted, adding, "In this regard, our pioneering position in international funding has once again been confirmed. I would also like to thank all the correspondent bank representatives who supported our transaction and showed great interest."

Syndication Loan Aligned with Sustainable Finance Framework

Pointing out that VakıfBank has focused on sustainability in its syndication loans for the last four years, Üstünsalih concluded his remarks by saying, "As a pioneering bank that sets trends in the sustainability area and has signed many principles, we have fully aligned our syndication transactions this year with our Sustainable Finance Framework. By channeling the international funds we provide into environmental and social-themed loan products, we are committed not only to financial success but also to leading towards a sustainable future. In the upcoming periods, we will continue to diversify our products in this area by closely following international developments in sustainable finance and maintaining our pioneering position among Turkish banks."