Dubai, UAE: Türkiye Vakıflar Bankası T.A.O. (“Vakifbank” or the “Bank”), the second largest bank in Türkiye in terms of asset size since YE2020, is pleased to announce the successful signing of its 367-day USD 518,500,000 and EUR 331,400,000 Sustainable Term Loan Facilities on 25 November 2024 (“Facilities”). Proceeds of the Facilities will be used to finance convenient sustainable operations, assets, and projects, such as sustainable business finance, as defined in the VakıfBank Sustainable Financing Framework. 

Abu Dhabi Commercial Bank PJSC and Emirates NBD Capital Limited acted as Joint Co-ordinators, Mandated Lead Arrangers & Bookrunners on the transaction.

Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, ING Bank N.V. and Mashreqbank PSC acted as the Sustainability coordinators for the transaction.

Emirates NBD Capital Limited also acted as Documentation Agent, and Abu Dhabi Commercial Bank PJSC acted as Facility Agent.

Following strong global demand from 45 institutes from America, Europe, Asia, Middle East and Africa, the Facilities were oversubscribed to over 166% from the original launch amount. Vakifbank choose to scale back and signed the Facilities at  USD 870 million equivalent., with this transaction, the success of the deal underscores the strength of Vakifbank’s banking relationships and credit strength as well as the market’s acknowledgment of Vakifbank’s sustainability efforts despite. 

VakıfBank updated its Sustainable Finance Framework in 2023 which was first created in 2020. The framework has been aligned with the International Capital Market Association’s (ICMA) Green and Social Bond Principles and Sustainability Bond Guidelines and Loan Market Association’s (LMA) Green and Social Loan Principles.

Within this scope, VakıfBank determined its asset pool for the use of proceeds of the Sustainable Financing Instruments issued under this framework towards financing eligible green and/or social loans which meet the green and social eligibility criteria. In addition, VakıfBank intends to issue allocation reports of the net proceeds of Sustainable Financing Instruments annually and demonstrates all the loans compliant with VakıfBank’s eligibility criteria as outlined in the Sustainable Finance Framework with 3 years lookback period.  

As a bank integrating the sustainability approach to all of its operations and applications, VakıfBank also integrated use of proceeds format with its sustainability-themed syndication loan of November 2024. Hereupon, VakıfBank has opted to continue in a sustainable use of proceeds format for its syndication loans due to the enhanced focus on increasing its sustainable asset book and directly supporting projects with an environmental and/or social benefit.

Banks:

Sustainability Coordinator:

Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, ING Bank N.V. and Mashreqbank PSC

Coordinators:

Abu Dhabi Commercial Bank PJSC and Emirates NBD Capital Limited

Mandated Lead Arrangers & Bookrunners:

Abu Dhabi Commercial Bank PJSC, Citibank, N.A. ADGM Branch, Commercial Bank of Dubai PSC, The Commercial Bank (P.S.Q.C.), Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch ING Bank N.V., Mashreqbank PSC, Mizuho Bank, Ltd., MUFG Bank, Ltd., MUFG Bank Turkey A.Ş., Qatar National Bank (Q.P.S.C.) Paris Branch, Societe Generale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, London Branch

Lead Arranger:

J.P. Morgan Securities plc

Arrangers:

Deutsche Bank AG, London Branch, DOHA BANK Q.P.S.C., Commerzbank Aktiengesellschaft, Invest Bank P.S.C., National Bank of Umm Al Qaiwain PSC, ABC International Bank plc, Habib Bank Ltd. (Bur Dubai Br.), CaixaBank, S.A., Banca UBAE S.p.A., Habib Bank AG Zurich, UAE, Barclays Bank PLC, Byblos Bank Europe SA, BCP Bank (Mauritius) Ltd., "Demir Kyrgyz International Bank" CJSC, Habib Bank Limited, Singapore Branch, The National Bank of Ras Al Khaimah (P.S.C), Erste Group Bank AG, Goldman Sachs International, MBH Bank Plc., Habib Bank Limited, Bahrain, Isbank AG, Banka Kombëtare Tregtare Kosovë Sh.A., Kentbank d.d., OYAK ANKER Bank GmbH, Bper Bank Luxembourg S.A., British Arab Commercial Bank PLC, ”AZER-TURK BANK” OJSC and Kapital Bank OJSC

About Vakifbank

VakıfBank is the 2nd largest bank of Türkiye in terms of asset size since YE2020 with its significant market shares in almost every field from loans to deposit, from trade finance to investment banking. Total loans and total deposits of VakıfBank reached TL 1.7 trillion and TL 2.2 trillion, respectively as of 1H24. Moreover, the Bank’s total assets exceeded TL 3 trillion threshold, reaching TL 3.2 trillion with an annual increase of 48%. The market shares in total cash loans, total deposits and total assets realized at 12.3%, 13.1% and 11.5%, respectively in 1H24.

VakıfBank delivered TL 19,192 million and TL 26,829 million bank-only and consolidated net income, respectively in 1H24. The Bank has TL 8.5 billion total free provisions as of 1H24. In addition to free provisions, VakıfBank’s total NPL coverage ratio materialized at 233.2% as of 1H24, while Stage 2 and Stage 3 coverage ratios stands at 19.6% and 76.6%, respectively.

The Bank’s liquidity ratios are well above regulatory thresholds with a total LCR of 223%, FC LCR of 333% and NSFR of 132% as of 2Q24. In addition to the strong liquidity ratios, VakıfBank is comfortable in terms of short-term liquidity position and has USD 6.5 billion free FC liquidity as of 1H24. The Bank’s total and TL loan to deposit ratios materialized at 79.3% and 76.3%, respectively.

On the solvency side, VakıfBank continues to have solid solvency ratios with a total CAR, Tier1 and CET1 ratios of 14.5%, 13.1% and 10.5%, respectively as of 1H24.

As the most active Turkish bank in wholesale international funding, VakıfBank completed various remarkable transactions and obtained USD 8.8 billion fresh funding from international debt capital markets since the beginning of 2024:

  • A collateralized funding transaction with an international bank for USD 500 million with a term of 3 years in March,
  • The largest outright DPR securitization transaction among Turkish banks amounting USD 700 million consisting of 2 tranches in EUR and USD denominated, totaling 5 years in maturity with a minimum of 2-year grace period in 6 different transactions in March,
  • The first AT1 issuance in the bank's history on international markets, amounting USD 550 million in April,
  • A Basel III-compliant Tier 2 bond issuance, amounting USD 700 million, with a 10-year maturity and a call option at the end of the 5th year in June.
  • The fourth sustainable eurobond of the Bank amounting USD 500 million with a maturity of 5.25 years, maintaining the leading position in Turkish banking sector with a total USD 2.5 billion sustainable eurobond amount.

The Ministry of Treasury and Finance, Turkey Wealth Fund and VakıfBank Pension Fund hold 14.75%, 74.79% and 4.06% shares, in the Bank’s shareholder structure, respectively and 6.36% is open to public.

In the meantime, VakıfBank will be at your disposal to provide any further information you may require in obtaining a credit approval. You may also login to their web site https://www.vakifbank.com.tr/en/investor-relations for recent rating reports and interim financials.  Please be kindly notified that you will soon be approached by the coordinator banks for further details and execution of the documents.

About Emirates NBD

Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region with a presence in 13 countries, serving over 9 million active customers. As at 30th September 2024, total assets were AED 956 billion, (equivalent to approx. USD 260 billion). The Group has operations in the UAE, Egypt, India, Türkiye, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 859 branches and 4,512 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.89 billion. 

Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv, the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region.

Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE’s main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is committed to supporting the UAE’s Year of Sustainability as Principal Banking Partner of COP28 and an early supporter to the Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water.