Turkey's Garanti BBVA has issued a USD 30 million sustainable bond focused on climate adaptation and resilience, in a transaction structured under the BBVA Sustainable Debt Financing Framework. The bond, issued on 29 June under the bank's international funding programme, has a tenor of 371 days.
According to the bank, proceeds will finance climate-resilient water infrastructure and water management, flood prevention and stormwater management, climate- and disaster-resilient public infrastructure, post-disaster reconstruction, resilient urban regeneration, emergency preparedness and early warning systems, and the digitalisation and modernisation of water utilities and critical infrastructure. The bank described it as one of the first sustainable finance transactions focused on climate adaptation and resilience.
ADAPTATION-FOCUSED USE OF PROCEEDS
Mahmut Akten, country manager of Garanti BBVA, said: "The climate crisis requires not only a transition to a low-carbon economy, but also the transformation of our production systems, cities, natural resources and infrastructure to become more resilient to changing climate conditions."
Akten said the bank viewed sustainable finance not only as a way to support its customers' transition, but also as a strategic tool for making the economy and society more resilient in the long run.
"Through this issuance, we aim to finance projects that strengthen long-term resilience while supporting sustainable development," Akten said.
BBVA FRAMEWORK ANCHORS TRANSACTION
The bond was structured under the BBVA Sustainable Debt Financing Framework, and the bank said the issuance continued the diversification of its sustainable finance strategy through new instruments supporting investment in climate adaptation and resilience.
Akten thanked investors for their confidence in Garanti BBVA's sustainability vision, expertise in international capital markets and financial position.
The bank did not disclose the pricing or specific investor breakdown for the transaction.
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