Garanti BBVA taps $ 125mln bond for green, social projects

04 / 10 / 2026

By Marwa Nassar - -

Garanti BBVA has completed a $ 125 million sustainable subordinated bond issuance, marking its return to the subordinated bond market after several years and introducing a new financing model to support its capital structure and sustainable investments.

The 10-year Tier II bond includes a call option exercisable from the fifth year. Proceeds will be used to support green and social investments, including financing for electric vehicles, energy-efficient equipment and technologies, and other eligible green investments by micro-enterprises and SMEs, as well as access to finance for women entrepreneurs.

Sustainable finance:

The issuance forms part of Garanti BBVA’s strategic partnerships with international financial institutions and will strengthen its regulatory capital base while diversifying its funding channels.

Atıl Özus, Executive Vice President for Finance and Treasury at Garanti BBVA, said the Bank’s partnerships with international financial institutions help strengthen its funding structure while developing financing models that respond to the needs of the real economy.

“By supporting our regulatory capital base, this issuance allows us to further diversify our relationships with international institutions and our capital funding channels,” Özus said.

Green, social investments:

Sinem Edige, Executive Vice President at Garanti BBVA, said the transaction represents an important step in the Bank’s sustainability efforts.

“We see sustainable finance as a key element of our long-term strategy and an important contributor to financing the economic transition,” Edige said.

She added that the funding will support green transition investments by micro-enterprises and SMEs and improve access to finance for women entrepreneurs.

“For us, sustainability is not limited to specific products and financing solutions; it is a holistic approach through which we accompany our customers on their transformation journeys by understanding their needs and providing financing, advisory services and innovative solutions,” Edige said.

IFC, DEG partnership:

Momina Aijazuddin, Director of the Financial Institutions Group for the Middle East, Central Asia and Türkiye at IFC, said the investment builds on IFC’s longstanding partnership with Garanti BBVA and supports sustainable and inclusive growth in Türkiye.

“By strengthening Garanti BBVA’s capacity to finance micro, small, and medium enterprises, we are helping expand opportunities for women entrepreneurs while supporting businesses investing in the energy transition,” Aijazuddin said.

Gudrun Busch, Senior Director for Financial Institutions and Capital Markets at DEG, said the joint investment strengthens Garanti BBVA’s capitalization while supporting green MSME projects and women entrepreneurs.

The collaboration, she added, is contributing to Türkiye’s transition to a low-carbon future while creating social and environmental value.