Garanti BBVA Secures $125 Million in Green Financing

Garanti BBVA said it had secured financing from a consortium of the German Investment and Development Company (Deutsche Investitions- und Entwicklungsgesellschaft, or DEG), Germany’s development finance institution supporting private-sector investment in developing countries, and the International Finance Corporation, or IFC.

According to the statement, the bank raised $125 million through a sustainable subordinated bond issuance, classified as Tier II capital. The financing has a 10-year maturity and is callable beginning in the fifth year.

The bank plans to use the funds to finance electric vehicles, energy-efficient equipment and technologies, and other eligible green investments by microenterprises and small and medium-size businesses. It also plans to use the financing, under its social-finance program, to support small and medium-size businesses led by women entrepreneurs.