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A&O advises on world's first ESG-linked loan for a bank

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Fadian Adam
Adam Fadian

Counsel

Istanbul

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Ben Davies

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London

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03 June 2020

Allen & Overy and Gedik & Eraksoy have advised Standard Chartered Bank and Bank of America as arrangers of an ESG-linked syndicated loan facility for Turkey’s Garanti BBVA. 
 

The facility contains a sustainability-linked margin ratchet that adjusts according to Garanti BBVA’s performance against a number of environmental and sustainability performance indicators. This is the first such ESG-linked loan in Turkey and is believed to be the first in the world to be made available to a bank.

Commenting on the deal, Adam Fadian, a counsel with Allen & Overy in Istanbul, said: “We are delighted to have been able to support our clients and Garanti BBVA in delivering this first-of-a-kind transaction in the midst of the market volatility brought about by the Covid-19 pandemic.

“The strong appetite among lenders saw 28 of them across 13 countries join the facility and is testament to the growing importance of sustainability in the financial markets; a trend we expect to continue, both in Turkey and globally.”

Allen & Overy drew on its international network and expertise for this financing, with the team spread across Istanbul, London and Johannesburg. The Allen & Overy and Gedik & Eraksoy teams comprised partners Joe Clinton and Hakkı Gedik, counsel Adam Fadian, associates Dilsah Gurses, Edward Charlton-Jones, Burak Özsoy and candidate attorney Marco Zacchino.

For further details on Allen & Overy’s Environmental Social and Governance expertise please download our 2020 ESG credentials publication.