Garanti BBVA and IFC issued the first social bond in Turkey for women entrepreneurs
Garanti BBVA issued 6-year term maturity social bond with the value of 75 million US Dollars to be used in financing of women entrepreneurs with IFC (International Finance Corporation) a member of the World Bank Group, in accordance with foreign borrowing program. The bond became the first social bond in Turkey for use of the women entrepreneurs only. In addition, it is the first social bond issued by a private bank in emerging markets. Financing shall be provided to the women entrepreneurs up to the principal amount of 400,000 TL for the terms up to 36 months.
Fuat Erbil, CEO of Garanti BBVA, commented the following on the issue: “We, as Garanti BBVA, undersign studies to promote women entrepreneurs in order to increase their participation and contribution to the economy and employment rate and to meet their financing needs. Our financing support provided to women entrepreneurs, as Garanti BBVA, reached to 5 billion TL in the last 12 years. This agreement signed with IFC is another milestone of our longstanding efforts within the scope of our women entrepreneurs support program launched in 2006. We’re happy to be able to obtain fresh funding dedicated to women entrepreneurs, and in turn make contribution to their economic development. Besides, as this has been a debut gender bond issuance by a Turkish Bank, we’re also proud of introducing a unique funding instrument to the market. This product has newly emerged even in the global capital markets and Garanti BBVA was able to execute this deal also without posting any collateral. We’ll keep attracting new funds with innovative products to finance both our women entrepreneurs and sustainable projects which are aimed at contributing to the
Sustainable Development Goals