Garanti BBVA issued Turkey's first biodiversity blue bond in November 2025, raising USD 20.22 million through an instrument with a maturity of 1,100 days and directing the proceeds to finance the sustainable management of marine ecosystems in the Mediterranean basin. The transaction introduces a new asset class to Turkey's sustainable debt capital markets, combining the blue bond format — associated with ocean-related environmental projects — with biodiversity-specific use-of-proceeds criteria that address the growing global focus on nature loss alongside climate change.
The bond marks a milestone for Turkey's sustainable finance landscape, where labelled green and sustainability-linked instruments have been expanding in volume but biodiversity-focused issuance has been absent. By designating proceeds specifically for marine ecosystem preservation, Garanti BBVA is acting on the international momentum behind nature and biodiversity finance that has gathered pace following the Kunming-Montreal Global Biodiversity Framework and the growing integration of nature-related risks into financial institutions' environmental strategies.
PROCEEDS SUPPORT MEDITERRANEAN MARINE ECOSYSTEMS
Funds raised through the bond will support the sustainable management of marine ecosystems in the Mediterranean basin, according to the bank's announcement. The Mediterranean is recognised as one of the most biodiverse sea basins in the world and also one of the most threatened, with cumulative pressure from overfishing, coastal development, plastic pollution, and rising sea temperatures having degraded habitats at an accelerating rate over several decades. Linking bond proceeds to the preservation of these ecosystems places Garanti BBVA's issuance within a category of environmental finance where demand from specialised investors has been increasing.
The 1,100-day maturity provides a multi-year window over which funded projects can be developed, monitored, and reported against measurable environmental outcomes. Investors purchasing biodiversity-labelled instruments typically require robust frameworks for tracking whether use-of-proceeds criteria are being met, including independent verification and periodic reporting on ecological impact. The instrument's structure is therefore designed to satisfy both the financial requirements of investors and the environmental integrity standards that give the blue biodiversity label meaning.
The transaction builds on Garanti BBVA's existing blue finance programme. The bank stated it had provided approximately TRY 1 billion in blue finance since the start of 2024, with the new biodiversity bond extending that commitment into a more targeted instrument. The timing aligns with broadening global investor demand for instruments that address the nature crisis alongside climate risk, reflecting a shift in sustainable finance frameworks from a predominantly carbon-focused agenda to one that encompasses wider environmental and ecological dimensions.
BANK SETS TRY 3.5 TRILLION SUSTAINABLE FINANCE TARGET
Garanti BBVA has set a sustainable financing target of TRY 3.5 trillion for the period from 2018 to 2029, a long-horizon commitment that frames individual transactions such as the biodiversity blue bond within a larger strategic ambition. The target encompasses a range of activities including green loans, sustainability-linked facilities, and labelled bonds across environmental and social themes, providing a comprehensive architecture for the bank's transition finance and ESG-linked commercial activities.
The bank's parent group, BBVA, has been active in sustainable finance across its international footprint, including in the Spanish, Turkish, and Latin American markets, providing Garanti BBVA with access to frameworks, structuring methodologies, and investor relationships that support the issuance of novel instruments in the Turkish capital markets. That group-level experience has enabled Garanti BBVA to bring first-of-kind sustainable debt products to market.
The issuance comes as emerging-market financial institutions across the MENA and EMEA regions face growing pressure from international investors and rating agencies to demonstrate credible and differentiated sustainable finance strategies. A biodiversity blue bond that carries a specific environmental mandate may attract dedicated sustainability-focused investor mandates that are unable to participate in more generic labelled instruments, potentially broadening the investor base for Turkish bank paper in the international capital markets.