“Allen & Overy directs first Turkish ESG loan” – ICLG – June 9, 2020

On June 9, 2020 ICLG reported that “Standard Chartered Bank and Bank of America have taken advice from the Magic Circle and a Turkish law firm on arranging an environmental, social, governance (ESG)-connected syndicated loan facility.

Allen & Overy and Gedik & Eraksoy advised the two banks on structuring the financing, for the benefit of Turkish financial services company Garanti BBVA.

Listed on the Borsa Istanbul Stock Exchange, Garanti is partially owned by Spanish bank Banco Bilbao Vizcaya Argentaria, which owns 49.85% of the shares in the Turkish company, and is listed publicly on the London Stock Exchange.

The financial support facility agreement contains a sustainability-linked margin that will change according to how Garanti performs up against an array of environmental and sustainability factors.

The sustainability target-driven financing makes this first of its kind in Turkey, and the first ever to be made available to a bank.”

You may read the article on the ICLG internet site.