Sustainable Credit Products range

Sustainable Loans for Companies:

Borrowing entities must comply with Garanti Bank’s Environmental and Social Loan Policy in their activity.

Our sustainable products design derive from the relevant European legislation and the guidelines issued by London Market Association’s Green Loan Principles and Sustainability Linked Loan Principles aimed to set common rules and characteristics for such types of products for all market participants in order to avoid greenwashing. General broad principles to be observed by a financial product to qualify as “sustainable are:

  • generates a clear impact on the client's sustainability oriented transformation,
  • generates a verifiable social and environmental impact
  • are simple in design and execution (plain vanilla)
  • relevant in terms of turnover
  • equipped with the necessary controls from the Bank’s business units and with clear legitimacy on the part of all stakeholders.

SDGs linked loans

  SDGs linked loans are financial solutions offered to GBR customers based on projects that directly contribute to one or more of the UN’s SDGs. These projects can be considered as green, social or sustainable subject to their use-of-proceeds.

ESG linked loans

Sustainability linked loans are financial solutions offered to the Bank’s clients based on the Borrower’s sustainability transformation targets quantified in pre set KPIs to be contractually agreed with the Bank and monitored /reported by an external verifier independent ESG certified auditor)[1].

The use of proceeds is unspecified in this case, yet a significant percentage of the client’s sales should derive from its sustainable activity.

Core components of the two categories of sustainable loans:

SDG linked
(labelled green’/’sustainable’)		 ESG linked
Destination Monitoring Use-of-proceeds General business performance of the Borrower in relation to predefined ESG KPIs
Pricing up to 5-10 bps incentive applied to average interest up to 5-10 bps incentive applied to average interest
Sustainable impact Direct impact of proceeds General impact of the borrower
ESG rating needed N/A best effort
Independent review needed best effort yes

Sustainable Loans for Retail:

Eco Housing Loan

An eco-friendly choice

WWF Bonus Card

Get the first eco card in Romania!