Turkcell (NYSE:TKC) (BIST:TCELL) and ING European Financial Services plc, %100 affiliate of ING in Turkey, have signed a 'Green Loan' agreement of 50 million Euros with a 5-year term. The transaction marks the longest average-maturity corporate finance deal in green loan format in Turkey. Turkcell, last year, had incorporated its sustainability approach into its financing activities with a 3-year term Sustainability Linked Loan of 50 million Euros. Likewise, ING was among the first six banks in Turkey to sign Principles for Responsible Banking thanks to its end-to-end sustainability approach.
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Turkcell and ING European Financial Services plc, %100 affiliate of ING in Turkey, have signed a 'Green Loan' agreement of 50 million Euros with a 5-year term. (Photo: Turkcell)
As part of the agreement, Turkcell will utilize the loan facility to finance its sustainable investments such as renewable energy, energy efficiency, green digital services and green buildings under the internationally recognized Green Loan Principles. The loan will be repaid at one go at the end of the 5-year term.
"We are diversifying our financing resources with sustainability focus"
Emphasizing Turkcell's continued focus on sustainable financing alternatives, "Following the 3-year term Sustainability Linked Loan signed last year, we are now extending maturity further with this 5-year term Green Loan which will be used to finance our sustainable investments. We are proud to sign this corporate Green Loan facility which has the longest average-maturity in the country and diversifies our funding resources with sustainability focus. The Green Loan facility also stands out with its Euribor+1.95% annual interest cost. As we develop our business model with a sustainability approach, we care about sustainability as much as the cost of our financial activities," says Osman Yilmaz, Turkcell CFO. "As a founding member of the CFO Taskforce initiative established by the UN Global Compact, we are working with other members towards identifying Sustainable Development Goals, encouraging sustainable investments and supporting the use of sustainable financing products."
"We believe in the transformative force banking sector holds for transitioning into a sustainable world"
Stating that ING in Turkey will increasingly broaden its sustainable financing practices, "At ING Group, we believe in the transformative force banking sector holds for transitioning into a sustainable world. We put sustainability into practice on our business and on customer level to make long-term positive contribution to businesses and the society backed by our leading bank role," says Aysegul Akay, Wholesale Banking Executive Vice President, at ING in Turkey. "ING Group is one of the 30 founding signatories of the Principles for Responsible Banking, initiated by UNEP FI. As ING Group, we have provided 6.4 billion Euros worth of sustainable loans in 2019 which is more than doubled compared to 2018. As ING, we are one of the first 6 banks to commit to put Principles for Responsible Banking into practice in Turkey. Today, we are proud to sign the first corporate green loan agreement in Turkey with Turkcell."
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