Tüpraş Secures $500 Million 5-Year Sustainability-Linked Loan From 7 International Banks
Tüpraş, Türkiye’s leading energy company and largest industrial enterprise, has secured a $500 million Sustainability-Linked Club Loan in a landmark financing arrangement with seven international banks. The five-year facility comes with a two-and-a-half-year grace period. Tüpraş secured the financing at a rate of all-in SOFR + 2.25 percent. The success of the club loan transaction reflects the company’s robust operational performance, disciplined financial management, and a credit rating that is above Türkiye’s sovereign rating.
The loan features participations from a diverse array of international financial institutions and stands out for its well-structured syndication, competitive cost advantage, extended maturity profile despite challenging global economic conditions.
The financing was structured as a Sustainability-Linked Loan, embedding into the financing Tüpraş's key sustainability objectives of reducing greenhouse gas emissions and sustainability investments aligned with the EU Taxonomy.
Following meetings held in major financial centers prior to the transaction, Bank of America Europe DAC (Coordinator, Mandated Lead Arranger, Documentation Agent), ING Bank N.V. (Coordinator, Mandated Lead Arranger), MUFG Bank Ltd. (Sustainability Coordinator, Lead Arranger), First Abu Dhabi Bank PJSC (Sustainability Coordinator, Mandated Lead Arranger, Agent), Emirates NBD Capital Limited (Mandated Lead Arranger), Société Générale (Lead Arranger), and Citibank, N.A. ADGM Branch (Lead Arranger) participated in the syndication.
Highlighting the significance of the loan within the current economic circumstances, Tüpraş CFO Doğan Korkmaz remarked: “The loan we secured firmly establishes Tüpraş’s distinguished position within international financial markets as one of Europe’s preeminent energy enterprises. The transaction demonstrates how companies with robust financial governance and disciplined balance sheet management are able to stand out despite the volatility triggered by global and regional economic uncertainties.
By 2050, we envision making ourselves as the leading carbon-neutral energy company, executing our Strategic Transition Plan while diversifying our funding sources. Driven by unwavering confidence in our market’s potential and our industry’s future, we have committed to an ambitious $8.25 billion investment program through 2035.”
Korkmaz highlighted that Tüpraş is the company with the highest number of investors on Borsa Istanbul and the highest dividend distributor over the past three years, stating: “We are committed to creating added value and strive to take firm steps toward the future with the trust and support of our stakeholders. Through this approach, we will maintain the strength of our balance sheet through disciplined and effective financial policies and pursue our Strategic Transition Plan with continued commitment.