Takeaways

• Garanti BBVA has issued a $34 million (€30 million) green bond to support sustainable agriculture and climate adaptation projects across Türkiye.
• The proceeds will fund organic farming, efficient irrigation, water management, and resilient agricultural infrastructure.
• The issuance aligns with the bank's long-term sustainable finance strategy and growing focus on climate resilience.

Garanti BBVA has launched a $34 million (€30 million) green bond for agriculture, strengthening its commitment to sustainable finance while helping Türkiye's farming sector prepare for the growing impacts of climate change.

The bond, issued under the bank's international funding program and Sustainable Debt Finance Framework, has a maturity of one year and two days. The funds raised will be directed toward projects that promote sustainable agriculture finance and improve the resilience of agricultural communities facing increasing climate risks.

The financing will support a range of initiatives, including organic farming, sustainable land management, modern irrigation systems, water conservation measures, and agricultural infrastructure. These investments are expected to help farmers adapt to rising temperatures, changing rainfall patterns, and growing water shortages.

Read More: Zambia’s First Sustainability Bond: $100M Issuance on the Anvil

As climate challenges continue to affect agricultural production, financial institutions are increasingly expanding their sustainability efforts beyond renewable energy and emissions reduction. Garanti BBVA's latest green bond for agriculture reflects a broader industry shift toward financing climate adaptation and protecting sectors that are highly exposed to environmental risks.

Mahmut Akten, CEO of Garanti BBVA, said the bank considers sustainable finance an essential driver of Türkiye's economic transformation. He noted that agriculture plays a vital role in both ensuring food security and helping the country adapt to climate change.

According to Akten, strengthening resilient agricultural production has become increasingly important as the effects of climate change become more visible. He added that investments supporting sustainable farming will contribute to Türkiye's long-term environmental and economic stability.

The issuance also forms part of the bank's wider sustainable finance strategy for Türkiye. Garanti BBVA has increased its sustainable finance target for the 2018–2029 period to TRY 3.5 trillion. By the end of the first quarter of 2026, the bank had already achieved approximately TRY 1.3 trillion toward that goal.

The expanded target highlights the growing role financial institutions are expected to play in supporting the country's transition to a more sustainable economy. Areas such as renewable energy, energy efficiency, circular economy projects, sustainable agriculture, and social impact initiatives remain key priorities for future investments.

The bank said it plans to continue developing sustainable funding sources while financing projects that protect natural resources and encourage responsible agricultural practices.

For investors, the bond offers a clearly defined use of proceeds, with funding allocated to projects designed to strengthen agricultural climate resilience. Investments in efficient irrigation and improved water management are particularly significant as water scarcity becomes a pressing concern across many farming regions.

Also Read: Sustainable Finance Market Size Set to Double by 2031, Green Bonds Dominate

The transaction also demonstrates how sustainable debt instruments can channel private capital into sectors where climate risks are already affecting productivity and economic growth. As demand for climate adaptation in agriculture continues to increase, transparent reporting and measurable project outcomes will remain important for maintaining investor confidence.

By issuing this green bond, Garanti BBVA is reinforcing the growing importance of sustainable finance in strengthening Türkiye's agricultural sector while supporting long-term climate resilience and food security.

Follow more news and views via our Sustainable Finance & Technology and Featured Articles sections, and stay updated on the top ESG events to attend in 2026 for industry insights and networking.

If you're looking for suitable ESG and Sustainability providers to share customized solutions specific to your business needs, you can check out KnowESG's Solutions page.

If you are an ESG provider looking to get your organization listed on our portal, visit this page.

Source: ESG NEWS