Mayer Brown Advised Akbank T.A.Ş. Issue First Turkish Gender-Linked Bonds

Mayer Brown Advised Akbank T.A.Ş. Issue First Turkish Gender-Linked Bonds

Global law firm Mayer Brown advised three global financial institutions concerning the issuance of sustainable and gender-linked bonds by Akbank T.A.Ş., a prominent Turkish multinational banking and financial services firm.

The advisory covered diverse legal aspects, including bond structure, terms negotiation, and document drafting. Mayer Brown assisted the Asian Infrastructure Investment Bank (AIIB) and the International Finance Corporation (IFC) in their issuance of two sustainable Tier-2 subordinated bonds, totalling $150 million. Additionally, the United States International Development Finance Corporation (DFC) received guidance from Mayer Brown for a separate series of Gender Tier-2 subordinated bonds amounting to $150 million.

These bonds, issued by Akbank T.A.Ş., are earmarked to fund the company’s initiatives in sustainable and gender-focused lending programs. This venture marks a momentous achievement not only for Akbank but also for the entire Turkish banking realm. Notably, this marks the inaugural instance of a Turkish bank engaging in the issuance of sustainable and gender-linked bonds. The anticipation is that these bonds will facilitate Akbank in procuring supplementary funding for its endeavours in sustainable and gender-targeted lending projects.

The AIIB and IFC bond series contributed to the advancement of sustainable lending practices, while the DFC funding was specifically directed towards expanding consumer finance loans for women and women-owned small businesses in less-developed Turkish cities. This ground-breaking initiative is recognised as the world’s pioneering issuance of gender Tier-2 capital.

Banking & Finance Partners Jim Patti (Chicago) and Peter Pears (London) led the Mayer Brown team that also included partner James Taylor and Senior Associate Whitney Joseph (both in London).