QNB Finansbank renewed its sustainability-linked syndication by 104%.
QNB Finansbank, the Turkish subsidiary of Qatar National Bank (Q.P.S.C.), the largest financial institution in the Middle East and Africa, has signed an agreement on November 22, 2022 to renew its US$ 529 million maturity due from November 2021 and December 2019. Concluding an Islamic financing agreement simultaneously with the syndicated loan, the bank renewing its December 2022 maturities by 104%.
The syndicated loan with a maturity of 367 days for a total of US$ 448 million, consisting of two tranches of US$ 184.5 million and EUR 253 million, had a total cost of Sofr +4.25% for the US$ tranche and Euribor +4.00% for the Euro tranche, in parallel with other Turkish bank syndications. In parallel to the syndicated loan, the Bank has reached an agreement with a Bank to provide Islamic financial resources worth US$ 100 million with a term of 18 months
Under 367-day-term sustainability linked syndicated loan, QNB Finansbank undertakes to supply its electricity from renewable sources, offer innovative solutions to SMEs with Digital Bridge, and included to the widely recognized the Bloomberg Gender-Equality Index,.
33 banks from 22 countries participated, where 5 of them are new participants to the facility from different regions. Standard Chartered Bank was the coordinator of the agreement, they shared the sustainability coordinator role with another bank, Mizuho Bank Ltd. act as agent.
Ömür Tan, the CEO of QNB Finansbank, said he is very proud of the successful renewal of the sustainability-linked syndicated loan facility that remunerate the Bank's 35th year and continued as follows: "We continued our sustainable contribution to the Turkish economy with our syndicated loan obtained this year to be used for trade finance purposes. The 104% rollover rate demonstrates the confidence to our bank and the economy from international markets. We managed to diversify our funding source with an Islamic agreement signed simultaneously with our syndicated loan this year. The sustainability performance criteria determined under the borrowing indicates the acceptance and support to our responsible and inclusive banking approach under environmental and social impact management by international markets. In this respect, we prioritize supporting sustainable transformation of our customers by bringing the services provided in the digitalization journey of SMEs a step forward. While reducing our carbon footprint by using clean energy sources, we carry forward our determined stance on gender equality in the social dimension. QNB Finansbank will continue to contribute to a sustainable economic transformation with its diversified funding alternatives in the coming period as well."
QNB Group: Operating with over 27K employees and posting consistent growth in the Middle East and Africa Region, QNB Group boasts a network of more than 4,700 ATMs and a presence in approximately 1,000 locations. The Group is recognized by Brand Finance Magazine as the most valuable banking brand in the Middle East and Africa. QNB Finansbank, the Group’s bank in Türkiye, operates with 440 branches and 11,385 employees as of 30 September 2022.