Akbank has issued a total of US$300 million Basel-III Tier-2 bonds under the Bank’s Sustainable Finance Framework. Each of Asian Infrastructure and Investment Bank (“AIIB”) and the International Finance Corporation (“IFC”) subscribed to US$75 million, reaching a total of US$150 million of sustainable T2 bonds with 10-year maturity callable at the 5th year. With this transaction, Akbank has completed its second issuance of sustainable T2 bonds, following the first issuance in 2021.
Akbank also announced the U.S. International Development Finance's (DFC) US$ 150 million contribution, which focuses on extending consumer finance loans to women and women-owned small businesses in underdeveloped cities in Türkiye. This marks the issuance of the first gender Tier-2 in the world.
Levent Çelebioğlu, Executive Vice President of Akbank Corporate & Investment Banking said, “While our capital is robust, the support we have received from leading international financial institutions during the fluctuating global market conditions demonstrates Akbank’s strong reputation in the international markets.
Thanks to the joint efforts of three IFIs based in different geographies from Asia to the United States, this marks the issuance of the first gender Tier-2 in the world, while also supporting our green SME and commercial clients through our sustainability strategy and recently enhanced Sustainable Finance Framework. Akbank’s latest sustainability T2 in 2021 was the last T2 issuance in Türkiye and today Akbank becomes the first bank to open the subordinated bond market in Türkiye since then. In the meantime, Akbank successfully called two previously issued Tier-2’s on their call dates. Being able to issue a capital instrument today is a testament to Akbank’s strong credit story. We thank each of our long-term partnersfor their support and look forward to advancing our collaboration.”
Akbank prioritizes sustainable wholesale borrowing, is the first Turkish bank to announce its commitment to 100% ESG wholesale funding by 2030 and has pioneered multiple innovative debt instruments. Having risen from 10% in 2021 to 45% in 2022, Akbank’s aim for 2023 is to maintain the ESG share of wholesale funding at 45%.