First Private Bank Issue of Social Bonds for Women Entrepreneurs in Emerging Markets
BNY Mellon today announced its recent appointment as Fiscal Agent, Paying Agent, Exchange Agent, Registrar, and Transfer Agent on a social bond worth $75 million dollars to help finance women entrepreneurs in Turkey. The six-year social bond was issued by Turkey’s Garanti Bank with the Women Entrepreneurs Opportunity Facility (WEOF), launched by World Bank Group’s International Finance Corporation, and Goldman Sachs’ 10,000 Women initiative. It is the first ever such issue by a private bank in emerging markets. It is also the first ever such issue by a Turkish entity. Proceeds will provide direct financing to female business owners in Turkey.
The issuance aligns to Garanti’s long-term commitment to social investing and improving the financial situation of women in Turkey. Since 2006, it has made over TL 5 billion (USD 1.1 billion) in financing available to women in business.
“We are delighted to be able to introduce this new funding instrument to the Turkish market to obtain fresh funding for women entrepreneurs through this pioneering bond issue,” said Garanti Bank CEO Fuat Erbil. “We have been offering products and services for women entrepreneurs since 2006, including over TL 5 billion in financial support, to help them grow and, in turn, drive broader economic growth.”
BNY Mellon has supported Garanti’s socially-responsible investment journey since 2016. Garanti previously partnered with BNY Mellon ESG Advisory Services, an additional service offered by the bank’s Issuer Services business. BNY Mellon worked with Garanti to help them gain improved engagement with investors and enhanced Environmental, Social and Governance (ESG) assessment scores from an ESG rating agency.
“Garanti’s commitment to women aligns very well to BNY Mellon’s ‘gender-lens’ investing principles,” said Sonia Chaliha, Global Head of Business Development for Corporate Trust, BNY Mellon. “We believe gender equality is a precondition for global development, and are proud to support a private bank with similar values around Corporate Social Responsibility.”
Separately, in 2016, BNY Mellon joined forces with the UN Foundation to develop “Return on Equality: Investment Opportunities to Help Close the Global Gender Gap.” The report examines the potential $300 billion global market impact of companies achieving gender parity.
To learn more about BNY Mellon Corporate Trust capabilities, please visit our website.
About Garanti
Established in 1946, Garanti Bank is Turkey’s second largest private bank with consolidated assets of nearly TL 385 billion (USD 84.3 billion) as of June 30, 2018. It is an integrated financial services group operating in every segment of the banking sector including corporate, commercial, SME, payment systems, retail, private and investment banking together with its subsidiaries in pension and life insurance, leasing, factoring, brokerage and asset management. As of June 30, 2018, Garanti provides a wide range of financial services to its close to 15.8 million customers with 18,522 employees through an extensive distribution network of domestic and international branches.