Garanti BBVA and IFC sign EUR 40 M loan agreement on financing investments in green housing

Garanti BBVA has signed a EUR 40 million loan agreement with the International Finance Corporation (IFC), a member of the World Bank Group, with the purpose of financing investments in green housing, aiming to contribute to the joint effort to preserve the environment.

The EUR 40 million loan will allow Garanti BBVA to provide green mortgages and home improvement loans, thus encouraging the bank’s clients to migrate toward sustainable options when choosing a new home or improvements for their existing one. At the same time, the new financing will help Garanti BBVA increase its contribution to reducing greenhouse-gas emissions.

Garanti BBVA has developed in recent years a vast portfolio of green financial products for the real estate sector, including Casa Eco green mortgage loan and a green loan for residential developers.

“The current agreement with our long-term partner, IFC, is another proof of our commitment to bringing our contribution to nature’s protection and well-being of society. An important direction in our strategy is educating clients about sustainable financing, and we will strive to increase customers’ appetite for purchases that contribute to protecting the environment. stated Mustafa Tiftikcioglu, CEO Garanti BBVA Romania.

Garanti BBVA Group has had a long-term partnership with IFC, receiving several loans from the financial institution, and, in recent years, the funds have prioritized green financing. In 2022, Garanti BBVA Consumer Finance, part of Garanti BBVA Group Romania, also signed a loan agreement of EUR 10 million with the IFC to help Romanians reduce their homes’ carbon footprints through advantageous green financing designed for individuals.

“One of our key priorities in Romania is to expand access to credit and the range of financial products available to support green investments,” said Ary Naïm, IFC’s Regional Manager for Central and Southeast Europe. “Green mortgages can incentivize the development and purchase of environmentally sustainable housing, which results in benefits for the environment but also for their owners, though better living standards and reduced utility bills.”