Akbank has issued a residential mortgage-backed covered bond to the European Bank for Reconstruction and Development (EBRD) with a maturity of 5-years and a total value of TRY 3.9 billion. The proceeds from the issuance will be used to finance eligible projects under the Türkiye Green Economy Financing Program II (Türkiye GEFF II).
The transaction represents the first covered bond issuance since 2019. In doing so, Akbank and the EBRD have effectively reopened the Turkish covered bond market. Having launched Türkiye’s first covered bond issuance in 2015, this marks Akbank’s fifth transaction of this kind. It is also notable as the bank’s first issuance to the EBRD. The fund secured within the scope of the Türkiye Green Economy Financing Facility II (Türkiye GEFF II) aims to provide financing to eligible green investments by public sector, private companies, producers and service providers.
In her statement, Akbank Treasury and Financial Institutions Executive Vice President Şebnem Muratoğlu told, “We are delighted to carry out a new transaction with the EBRD, a key investor for our bank and a long-standing supporter of Turkish economy through its diverse investments across various sectors. This transaction will leave a significant mark on the Turkish capital markets as well as further strengthening our relationship. As Akbank, we pioneered the market by launching Türkiye’s first covered bond issuance in 2015, opening this market to issuers. Today, we are proud to maintain this role by reopening the market for long-term Turkish lira funding and executing a transaction that strengthens global confidence in the Turkish lira. Through this funding, we will support our customer’s green projects aimed at transitioning to a low-carbon economy and enhancing climate resilience under the Türkiye Green Economy Financing Facility II (Türkiye GEFF II) as well as taking Akbank’s sustainability efforts one step further.”