The European Bank for Reconstruction and Development (EBRD), a leading institutional investor in Turkey, invests USD 50 million in QNB Finansbank’s first green bond.
QNB Finansbank, the Turkish subsidiary of Qatar National Bank (Q.P.S.C.), the largest financial institution in the Middle East and Africa, has issued its first green bond with the backing of the EBRD. Building on the successful roll-over of QNB Finansbank’s Environmental, Social and Governance (ESG) linked syndicated loan of USD 335 million in May 2021, this first green bond issuance, worth USD 50 million, also marks the EBRD's first investment in a green bond issued by a Turkish bank. In accordance with the International Capital Market Association (ICMA) Green Bond Principles, the USD 50 million proceeds generated from this three-year maturity facility will be used to finance internationally certified green building projects in the QNB Finansbank’s portfolio.
QNB Finansbank’s CEO Temel Güzeloğlu stated: “This green bond issuance is a milestone for QNB Finansbank that was possible with the support of the EBRD. At the same time, our bank has continued to successfully diversify its international funding base. This success also demonstrates our investors’ confidence in us, our solid financial fundamentals and performance. It reflects that we have a clear sustainability strategy and roadmap that actively support green sustainable lending opportunities. This green bond issuance will be used to finance internationally certified green building projects in QNB Finansbank’s portfolio, and our syndicated loan is channelled to support the Turkish economy and sustainable development. Our cooperation with the EBRD not only serves this common purpose, but also allows us to tap into a pool of capital that supports the transition towards a sustainable and low-carbon economy.”
QNB Group has established a Green, Social and Sustainability Bond (GSSB) framework in full alignment with ICMA green bond principles, social bond principles and sustainability bond principles. As per industry best practices, QNB Group obtained a Second Party Opinion (SPO) confirming full alignment of the framework with ICMA principles and guidelines. QNB Finansbank’s green bond is issued under QNB’s GSSB framework.
QNB Group has defined a group-wide sustainability framework with the objective to deliver long term financial, environmental, social and ethical value, for the benefits of its customers and stakeholders. The sustainability framework supports QNB’s goal of sustainable financial performance through sustainable finance, sustainable operations and corporate social responsibility activities in the communities we serve.
QNB Group’s presence through its subsidiaries and associate companies extends to more than 31 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 27,000 operating through 1,000 locations, with an ATM network of more than 4,400 machines. The Group is recognized by Brand Finance Magazine as the most valuable banking brand in the Middle East and Africa, and was the first to achieve MSCI ESG “AA” rating in the region. QNB Finansbank, the Group’s subsidiary in Turkey, operates with a total of 467 branches and 10,857 employees as of March 31, 2021.
The EBRD is a leading institutional investor in Turkey and to date has invested more than EUR 13 billion in the country through 337 projects, with 96 per cent of these in the private sector. In 2020 the Bank responded to the COVID-19 pandemic by stepping up its financing in the country to EUR 1.7 billion from EUR 1.0 billion in 35 projects in 2019. In 2021 the Bank’s investments will support the country’s post-COVID recovery.