Garanti BBVA grants Kordsa $50 million sustainable loan

The terms of the loan are based on three key performance indicators: annual reduction in scope 1 and scope 2 greenhouse gas emissions, the proportion of suppliers with emission reduction objectives aligned with the Science Based Targets initiative, and the annual increase in health and safety training.

The agreement is part of Kordsa’s efforts to reduce the environmental and social impact of its activities, while also decreasing emissions throughout its supply chain. It places a particular focus on the raw materials it procures, using the emission reduction objectives of the Science Based Targets initiative. This sustainable financing loan underscores Kordsa’s pioneering sustainable practices and supports the transformation of its suppliers as they work to mitigate the environmental impact of their activities.

Garanti BBVA’s Executive Vice President, Mahmut Akten stressed that Garanti BBVA has been focusing on tackling the climate crisis and fostering inclusive growth for nearly two decades. The bank aims to continue to grow in this field through various sustainable financing frameworks. “Our emphasis lies in crafting more advantageous pricing mechanisms for our clientele within sustainable finance frameworks. Beyond risk mitigation, we support all entities seeking sustainable transformations, leveraging our advisory role and the opportunities we provide,” he added.

The sustainable financing arrangement with Kordsa supports the United Nations Sustainable Development Goals regarding climate action, decent work and economic growth. The sustainable performance targets in the loan will be audited by independent experts contributing to its transparency.

Volkan Özkan, Chief Finance Officer at Kordsa pointed to the company’s transformative journey.  Over the last decade, Kordsa has grown in its composite technologies, construction reinforcement, and ’compounding’ divisions, evolving into an advanced materials company. “Our transformation embodies an ongoing expedition of exploration and innovation centered on technology and sustainability. We operate on the principle of sustainability at every stage of our business. We are confident that the loan agreement with Garanti BBVA International will further fortify our transformation narrative in this aspect" he stated.