An investment of USD 50 million with 3-year tenor in the first Green Bond issuance by QNB Finansbank A.S ("QNBFB", "QNB Finansbank" or "the Issuer"), a universal commercial bank incorporated in Turkey. The bonds are issued in accordance with QNB's Green, Social and Sustainability Bond Framework and benefit from a Second Party Opinion by S&P. The Green Bonds will be aligned with the International Capital Market Association's Green Bond Principles.
This investment supports the first Green Bond issuance of QNB Finansbank and is EBRD's first investment in a green bond issued by a Turkish bank. The Bank's assistance to QNB Finansbank in issuing their first Green Bonds is particularly important as the proceeds will be used to address the green economy needs, supporting the delivery of the Bank's medium term green agenda in Turkey.
ETI score: 70
ETI 70. The operation will contribute to the objectives of FI Green and Sustainability Bond Framework by supporting the Green and Resilient transition qualities by enabling the lender to access medium-term funding and diversify its funding sources, while ensuring transparency and adherence to high standard green credentials.
QNB FINANSBANK AS
QNB Finansbank is Turkey's fifth largest private bank (8th when state banks are included) by asset size. It is 99.88% owned by Qatar National Bank Q.P.S.C. (QNB), which is in turn 50% owned by Qatar Investment Authority,Qatar's sovereign wealth fund, (QIA) with the rest of the shares being publicly traded. QNB Finansbank also provides leasing and factoring services through its two large subsidiaries: Finans Leasing and Finans Factoring.
EBRD Finance Summary
An investment of USD 50 million in Green Bond issuance by QNBFB.
Total Project Cost
USD 50 million.
Additionality mainly stems from i) supporting QNB Finansbank in setting up the structure for a debut issuance of a Green Bond, which is expected to set a precedent and build confidence for potential subsequent issuances and ii) providing the lender with medium-term external funding, which is scarce in a distorted market environment.
Environmental and Social Summary
Categorised FI (ESP 2019): QNB Finansbank is an existing client. The Environmental and Social (E&S) Due Diligence has been undertaken within the limitations of capital market rules. The client will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9 and continue to implement the applicable EBRD's E&S Risk Management Procedures for Financial Institutions and submit Annual Environmental and Social Reports to the Bank. The Green Bonds will be aligned with EBRD's Framework Environmental and Social Governance criteria and the bank will submit impact reporting to the Bank. Potential renewable energy investments under the bond issuance will need to follow the EBRD E&S Eligibility Criteria for wind, solar, bioenergy, geothermal or hydro projects, as applicable.
Technical Cooperation and Grant Financing
Company Contact Information
Kubra Aksoy Kain
+90 212 318 5642
+90 212 318 5648
Buyukdere Caddesi No: 215 Gayrettepe Istanbul 34394 TURKEY
PSD last updated
14 Jun 2021
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