Turkey secures green loan renewal: Dutch-based ING Bank NV’s Turkey unit ING Türkiye has secured a EUR 176 mn sustainability-linked loan from a syndicate of 31 banks across 18 different countries, according to a press release. The 367-day loan is a renewal of an existing facility and marks ING Türkiye's fourth sustainability-linked syndicated loan. The renewal attracted demand 2.5x its initial target.

The details: The loan will be used for general trade finance purposes, with pricing set at 2.50% above the secured overnight interest rate for loans in USD, and 2.25% above the Euro Interbank Offered Rate for the EUR-denominated loans.

The loan aims to incentivize green financing: The loan includes sustainability performance criteria, allowing for improved pricing if ING Türkiye meets targets for green and social loans and enhances its Organization Health Index (OHI) score.

The lender tapped a UAE bank to manage the issuance: Emirates NBD Capital — the investment banking arm of Emirates NBD — will serve as the sustainability coordinators and the acting agent for the loan, ING Bank NV will support the UAE bank as the second sustainability coordinator.

Turkey's interest in green + sustainable financing is growing: Turkey was approved for a EUR 600 mn loan guarantee from the World Bank to help its official export credit agency Eximbank drum up close to EUR 1 bn in private capital for the export sector’s green transition back in May. The agreement will provide affordable, long-term financing for exporters to invest in green projects via 10-year commercial loans. The UAE’s Mashreq Bank has also facilitated the provision of some USD 11.7 bn in sustainable finance across several countries in the past two years, including Turkey. Turkey made its debut green sukuk issuances back in 2021.

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