ESG-Linked Syndicated Loans

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

(c) 23 February 2022.

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

(c) in relation to the third Test Date, the period running from the second Test Date until the third Test Date.

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

(c) 19 August 2022.

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

(c) in relation to the third Test Date, the period running from the second Test Date until the third Test Date.

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.

 

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