Garanti Bank secures CMB approval for $6 billion debt issuance

Published 16/05/2025, 16:08
Garanti Bank secures CMB approval for $6 billion debt issuance

ISTANBUL - Turkiye Garanti Bankasi (IS:GARAN) A.S. (TGBD), one of Turkey’s largest private banks, has received approval from the Capital Markets Board (CMB) for a significant debt instrument issuance. The bank aims to raise up to $6 billion through bonds, subordinated debts, and other debt instruments that can be included in its equity calculation.

The CMB, which oversees and regulates the securities markets in Turkey, approved the bank’s application as announced in its weekly bulletin. Garanti Bank made the application to the CMB on April 16, 2025, following its Board of Directors’ resolution on February 6, 2025, which outlined the bank’s intention to issue debt instruments subject to market conditions.

The planned issuance will consist of different series and maturities, offering fixed and/or floating interest rates determined at the time of issuance based on prevailing market conditions. The instruments will be sold outside Turkey in one or more issuances without public offering, allowing the bank to diversify its funding sources and bolster its capital structure.

Garanti Bank has confirmed that the information regarding the approval is consistent with the principles included in the Board’s Communiqué, Serial II Nr.15.1, and reflects the information received by the bank, adhering to its records, books, and documents.

This move comes as part of Garanti Bank’s broader strategy to maintain a strong capital base and enhance its financial flexibility. The bank’s initiative to issue debt instruments that can be counted towards its equity calculation is a common practice in the banking industry to meet regulatory capital requirements.

Investors are advised that the Turkish version of the public disclosure will prevail in case of any contradictions between the Turkish and English versions. This announcement is based on a press release statement from Garanti BBVA (BME:BBVA).

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