Linklaters advises Turkey’s TSKB on pioneering sustainable tier two bond

Linklaters has advised Turkey’s Turkiye Sinai Kalkinma Bankasi (TSKB) on its issue of the world’s first sustainable tier two bond. The $300 million Fixed Rate Resettable Tier 2 Sustainable Notes will be due in 2027, with a first call date in 2022 and a coupon of 7.625%. The proceeds will be used to finance and/or refinance projects satisfying defined criteria relating to climate change mitigation and sustainable infrastructure, among others.

This is the second ground breaking move that TSKB has made into the sustainable bond market, with Linklaters also advising on its issuance in May last year, with TSKB raising $300 million via its issue of the first ever Turkish green bond.

The Linklaters team was led by Capital Markets partner Richard O’Callaghan supported by associates Victoria Wyer and Burc Ozcelik. Turkish legal advice was provided by Paksoy, led by partner Omer Collak.

Richard O’Callaghan, Capital Markets partner at Linklaters, said:

“Green/sustainable bonds are becoming increasingly popular as effective instruments for raising capital on a cost effective basis, especially at a time when both issuers and conventional investors want to find ways to prove their green/sustainable credentials. We are delighted to have been able to assist TSKB on its pioneering move, combining sustainable bonds technology with the bolstering of its capital base.”