Sustainable SME Finance Bonds
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Garanti BBVA issued a 10-year Tier II subordinated bond, marking its return to the subordinated bond market after several years, with proceeds directed toward green and social investments under sustainable finance. On the green side, funding will support electric vehicles, energy-efficient equipment, and other eligible green investments for micro-enterprises and SMEs, while the social component will support women entrepreneurs' access to finance.
The transaction builds on Garanti BBVA's partnerships with international financial institutions, including IFC and DEG, which co-invested to strengthen the bank's capitalization and expand financing opportunities for businesses pursuing green transition investments in Türkiye.
As banks increasingly tie capital-raising directly to measurable sustainability outcomes, this bond signals that subordinated debt structures are becoming a tool for channeling institutional capital toward underserved SMEs and women-led businesses, alongside broader climate transition goals.
