ESG-Linked Syndicated Loans

In May 2020, Garanti BBVA signed first ESG linked syndication loan. the syndicated loan deal with 367-days maturity in the total funding amount of US$ 698,860,00.00 The all-in cost has been realized as Libor+2.25% and Euribor+2.00%.

(a) The first sustainability KPI (the First Sustainability KPI) is the share of coal power plants in the Borrower’s new project finance commitments for greenfield electricity production power plants and the expansion of the installed capacity of existing brownfield electricity production power plants. The Borrower's performance against the First Sustainability KPI will be determined as follows (with the percentages being the share of coal power plants in the Borrower’s new project finance commitments for greenfield electricity production power plants and the expansion of the installed capacity of existing brownfield electricity production power plants during the relevant period):

Performance for the first sustainability KPI in relation to the first Test Period: 0%

(b) The second sustainability KPI (the Second Sustainability KPI) is the share of the Borrower’s total electricity consumption sourced from renewable generation. The Borrower's performance against the Second Sustainability KPI will be determined as follows (with the percentages being the portion of the Borrower's total electricity consumption sourced from renewable generation during the relevant period):

Test Period	Outperform Target	Within Target	Below Target
The Test Period ending on the first Test Date	≥ 80%	50% to 79%	< 50%
The Test Period ending on the second Test Date	≥ 80%	50% to 79%	< 50%
The Test Period ending on the third Test Date	≥ 80%	50% to 79%	< 50%

Assurance for the first test date - 24 August 2020:

For more information please visit Appendix A.1.

For Assurance Statement please visit here.

Assurance for the second test date - 24 November 2020:

For more information please visit Appendix A.1.

For Assurance Statement please visit here.

Assurance for the third test date - 23 February 2021:

For more information please visit Appendix A.1.

For Assurance Statement please visit here.

In May 2021, Garanti BBVA renewed its ESG linked syndication loan. According to a statement issued by the bank, the syndicated loan deal, consisting of two tranches of $279 million and €294 million (over $359 million) with a maturity of 367 days, includes 34 banks from 18 countries and has a rollover ratio of 140%.

Test Date means:

(a) 25 August 2021;

(b) 24 November 2021; and

Test Period means:

(a) in relation to the first Test Date, the period running from 25th May 2021 until the first Test Date;

(b) in relation to the second Test Date, the period running from the first Test Date until the second Test Date; and

Sustainability KPIs

(a) The first sustainability KPI (the First Sustainability KPI) is the Borrower’s total financial commitments to sustainable finance. Eligible commitments will include, without limitation (i) loans and transactions in line with the Green Loan Principles and Sustainability Linked Loan Principles published by the Loan Market Association;
(ii) loans and transactions provided for climate change mitigation and adaptation projects and/or activities which are in line with the requirements of the EU Taxonomy Technical Expert Group Report (accessible here);
(iii) loans and transactions in line with local standards, where relevant; (iv) renewable energy loans (including solar roof-top loans which are provided for individuals and enterprises); (v) building insulation loans and (vi) green building loans. The Borrower's performance against the First Sustainability KPI will be determined as follows:

Test Date	Target Achieved	Target Not Achieved
First Test Date	≥ TRY 750 million	< TRY 750 million
Second Test Date	≥ TRY 1,125 million	< TRY 1,125 million
Third Test Date	≥ TRY 1,500 million	< TRY 1,500 million

The second sustainability KPI (the Second Sustainability KPI) is the Borrower having a carbon footprint feature within the Borrower’s existing mobile banking application used by its customers that is aimed at increasing awareness of sustainability, provides features such as carbon footprint calculation for cards and accounts’ expenses and offers advice on offsetting carbon footprint. The Borrower's performance against the Second Sustainability KPI will be determined as follows:

Test Date	Target Achieved	Target Not Achieved
Third Test Date	Exists as at Test Date	Does not exist as at Test Date

(c) The third sustainability KPI (the Third Sustainability KPI) is the share of the Borrower’s total electricity consumption sourced from renewable generation. The Borrower's performance against the Third Sustainability KPI will be determined as follows (with the percentages being the portion of the Borrower's total electricity consumption sourced from renewable generation during the relevant period):

Test Period	Target Sustained	Below Target
The Test Period ending on the first Test Date	≥ 80%	< 80%
The Test Period ending on the second Test Date	≥ 80%	< 80%
The Test Period ending on the third Test Date	≥ 80%	< 80%

Assurance for the first test date - 27 August 2021:

For more information please visit Appendix A.1.

For Assurance Statement please visit here.

Assurance for the second test date 24 November 2021:

For more information please visit Appendix A.1.

For Assurance Statement please visit here.

Assurance for the second test date - 23 February 2022:

For more information please visit Appendix A1.

For Assurance Statement please visit here.

November 2021:

On 22.11.2021 our Bank has signed a syndicated loan agreement with 367 days maturity in the amount of US $ 365.000.000 and € 247.000.000 comprising of two separate tranches. The loan which will be used for trade nance purposes has been executed with commitments received from 36 Financial institutions from 20 countries. The all-in cost for USD and EUR tranches have been realized as Libor + 2.15% and Euribor + 1.75% respectively.

Test Date means:

(a) 21 February 2022;

(b) 20 May 2022; and

Test Period means:

(a) in relation to the first Test Date, the period running from the date of this Agreement until the first Test Date;

(b) in relation to the second Test Date, the period running from the first Test Date until the second Test Date; and

Sustainability KPIs

The first sustainability KPI (the First Sustainability KPI) is the Borrower’s total financial commitments to sustainable finance. Eligible commitments will include, without limitation (i) loans and transactions in line with the Green Loan Principles and Sustainability Linked Loan Principles published by the Loan Market Association; (ii) loans and transactions provided for climate change mitigation and adaptation projects and/or activities which are in line with the requirements of the EU Taxonomy Technical Expert Group Report (accessible at
https://ec.europa.eu/info/sites/default/les/business_economy_euro/banking_and_finance/documents /200309-sustainable-finance-teg-final-report-taxonomy_en.pdf
(iii) loans and transactions in line with local standards, where relevant; (iv) renewable energy loans (including solar roof-top loans which are provided for individuals and enterprises); (v) building insulation loans and (vi) green building loans. The Borrower's performance against the First Sustainability KPI will be determined as follows:

Test Date	Target Achieved	Target Not Achieved
first Test Date	≥ TRY 1,000 million	< TRY 1,000 million
second Test Date	≥ TRY 1,500 million	< TRY 1,500 million
third Test Date	≥ TRY 2,000 million	< TRY 2,000 million

The second sustainability KPI (the Second Sustainability KPI) is the share of total electricity consumption sourced from renewable generation, including by way of IREC certificate purchases. The Borrower's performance against the Second Sustainability KPI will be determined as follows (with the percentages being the portion of the Borrower's total electricity consumption sourced from renewable generation during the relevant period):

Test Period	Target Achieved	Target Not Achieved
The Test Period ending on the first Test Date	≥ 100%	< 100%
The Test Period ending on the second Test Date	≥ 100%	< 100%
The Test Period ending on the third Test Date	≥ 100%	< 100%

Reporting Guidance

Garanti BBVA purchased yearly I-REC certified renewable energy for the usage of 87653 MWH of electricity generated from renewable sources Related I-REC certifications -which are comprised all of the locations such as ATM, branches, buildings and other energy consumption points- will be presented to the auditing firm through bilateral agreements from renewable energy producers.

Assurance for the first test date - 21 February 2022:

For more information please visit Appendix A1.

For Assurance Statement please visit here.

Assurance for the second test date - 20 May 2022:

For more information please visit Appendix A1.

For Assurance Statement please visit here.

Assurance for the third test date - 19 August 2022:

For more information please visit Appendix A1.

For Assurance Statement please visit here.

May 2022:

KPI #1- First Test Date (31 May- 24 August)

The first sustainability KPI (the First Sustainability KPI) is the Borrower's cumulative financial commitment towards social mobilization finance supporting women-owned enterprises starting from the date of this Agreement in line with Turkey’s thresholds under the BBVA Inclusive Growth Standard. Women-owned enterprises means any eligible borrower which is at least fifty percent (50%) and above owned by women. Under the first sustainability KPI, the consumer loans that are used for commercial purposes will be reported at a nominal amount of the transaction signed in the respective period, in all business segments (corporate, commercial, small and medium sized enterprises and retail) within the Bank. The Borrower’s performance against the First Sustainability KPI will be determined as follows:

Test Date

Target Achieved

First Test Date > TRY 500 million

Second Test Date > TRY 750 million

Third Test Date > TRY 1,000 million

KPI #2 First Test Date (31 May- 24 August)

The second sustainability KPI (the Second Sustainability KPI) is the Borrower's cumulative financial commitment towards social mobilization finance supporting micro small and medium sized enterprises starting from the date of this Agreement. Micro Small and Medium sized enterprises means a business with an annual turnover of up to TRY 4 million. Under the second sustainability KPI, the consumer loans that are used for commercial purposes will be reported at a nominal amount of the transaction signed in the respective period. The Borrower’s performance against the Second Sustainability KPI will be determined as follows:

Test Date

Target Achieved

First Test Date > TRY 500 million

Second Test Date > TRY 750 million

Third Test Date > TRY 1,000 million

Assurance for the first test date - 24 August 2022:

For more information please visit Appendix A1.

For Assurance Statement please visit here.

Assurance for the second test date - 23 November 2022:

For more information please visit Appendix A1.

Test Date

Target Achieved

Second Test Date > TRY 750 million

Assurance for the third test date - 21 February 2023:

For more information please visit Appendix A1.

Nov 2022

Test Date

(a) 21 February 2023;

(b) 24 May 2023; and

Test Period means:

(a) in relation to the first Test Date, the period running from the date of this Agreement until the first Test Date;

(b) in relation to the second Test Date, the period running from the first Test Date until the second Test Date; and

Sustainability KPIs

(a) The first sustainability KPI (the First Sustainability KPI) is the Borrower's cumulative financial commitment towards social mobilisation finance supporting women-owned enterprises starting from the date of this Agreement in line with Turkey’s thresholds under the BBVA Inclusive Growth Standard. Women-owned enterprises means any eligible borrower which is at least fifty percent (50%) and above owned by women. Under the first sustainability KPI, the consumer loans that are used for commercial purposes will be reported at a nominal amount of the transaction signed in the respective period, in all business segments (corporate, commercial, small and medium sized enterprises and retail) within the Bank. The Borrower’s performance against the First Sustainability KPI will be determined as follows:

Test Date	Target Achieved	Target Not Achieved
First Test Date	≥ TRY 500 million	< TRY 500 million
Second Test Date	≥ TRY 750 million	< TRY 750 million
Third Test Date	≥ TRY 1,000 million	< TRY 1,000 million

(b) The second sustainability KPI (the Second Sustainability KPI) is the Borrower's cumulative financial commitment towards social mobilisation finance supporting micro small and medium sized enterprises starting from the date of this Agreement. Micro Small and Medium sized enterprises means a business with an annual turnover of up to TRY 4 million. Under the second sustainability KPI, the consumer loans that are used for commercial purposes will be reported at a nominal amount of the transaction signed in the respective period. The Borrower’s performance against the Second Sustainability KPI will be determined as follows:

Test Date	Target Achieved	Target Not Achieved
First Test Date	≥ TRY 500 million	< TRY 500 million
Second Test Date	≥ TRY 750 million	< TRY 750 million
Third Test Date	≥ TRY 1,000 million	< TRY 1,000 million

(c) The third sustainability KPI (the Third Sustainability KPI) is the Borrower's commitment in continuing to be listed under the Bloomberg Gender-Equality Index in 2023. The Borrower’s performance against the Third Sustainability KPI will be determined as follows:

Test Date	Target Achieved	Target Not Achieved
First Test Date	Not applicable	Not applicable
Second Test Date	Not applicable	Not applicable
Third Test Date	Yes	Yes

Assurance for the first test date - 21 February 2023:

For more information please visit Appendix A1.

Assurance for the second test date - 24 May 2023:

For more information please visit Appendix A1.

Test Date

Target Achieved

Second Test Date ≥TRY 750 million

Assurance for the third test date - 23 August 2023:

For more information please visit Appendix A1.

Test Date

Target Achieved

Second Test Date ≥TRY 1,000 million

June 2023

Test Date

(a) 2 October 2023;

(b) 15 January 2024.

Test Period means:

(a) in relation to the first Test Date, the period running from 1 June 2023 until 15 September 2023; and
(b) in relation to the second Test Date, the period running from 1 June 2023 until 31 December 2023

Sustainability KPIs

(a) The first sustainability KPI (the First Sustainability KPI) is the Borrower's cumulative financial commitment towards social mobilisation finance supporting women-owned enterprises in the earthquake zone in the Republic of Turkey starting from 1 June 2023. Women-owned enterprises means any eligible borrower which is at least fifty percent (50%) and above owned by women residing in the eleven cities designated by the government of the Republic of Turkey as the 6 February 2023 earthquake emergency zone. Under the first sustainability KPI, the consumer loans that are used for commercial purposes will be reported at a nominal amount of the transaction signed in the respective period, in all business segments (corporate, commercial, small and medium sized enterprises and retail) within the Borrower and including new loans and the refinancing of existing loans.

(b) The second sustainability KPI (the Second Sustainability KPI) is the Borrower's cumulative financial commitment towards social mobilisation finance supporting micro sized enterprises in the earthquake zone in the Republic of Turkey starting from 1 June 2023. Micro sized enterprises means a business with an annual turnover of up to TRY 5 million, residing in the eleven cities designated by the government of the Republic of Turkey as the 6 February 2023 earthquake emergency zone. Under the second sustainability KPI, the consumer loans that are used for commercial purposes will be reported at a nominal amount of the transaction signed in the respective period

Assurance for the first test date - 02 October 2023:

For more information please visit Appendix A1.

June 2023

Test Date

(a) 2 October 2023;

(b) 15 January 2024.

Test Period means:

(a) in relation to the first Test Date, the period running from 1 June 2023 until 15 September 2023;

and

(b) in relation to the second Test Date, the period running from 1 June 2023 until 31 December 2023

Sustainability KPIs

(a) The first sustainability KPI (the First Sustainability KPI) is the Borrower's cumulative financial commitment towards social mobilisation finance supporting women-owned enterprises in the earthquake zone in the Republic of Turkey starting from 1 June 2023. Women-owned enterprises means any eligible borrower which is at least fifty percent (50%) and above owned by women residing in the eleven cities designated by the government of the Republic of Turkey as the 6 February 2023 earthquake emergency zone. Under the first sustainability KPI, the consumer loans that are used for commercial purposes will be reported at a nominal amount of the transaction signed in the respective period, in all business segments (corporate, commercial, small and medium sized enterprises and retail) within the Borrower and including new loans and the refinancing of existing loans.

Assurance for the first test date - 02 October 2023:

For more information please visit Appendix A1.

Assurance for the first test date - 15 January 2024:

For more information please visit Appendix A1.

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Environment, Social and Governance