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Türkiye's largest oil refinery company, Tupras, announced that it sealed a major agreement with a group of international banks to fund its investments under its strategic transformation plan, securing a $500 million syndicated loan tied to environmental and sustainability performance targets.
The loan agreement includes criteria aligned with Tupras' goals to reduce emissions and support sustainable development, and the funds will help diversify the company’s sources of financing for sustainability-linked investments, the company said on Thursday.
The group of banks providing the loan includes Bank of America Europe DAC, ING Bank N.V., First Abu Dhabi Bank PJSC, Emirates NBD Capital Limited, MUFG Bank Ltd., Citibank N.A. ADGM Branch, and Societe Generale (SOGN). The total cost of the loan, including fees and commissions, is set at the secured overnight financing rate (SOFR) plus 2.25%.
The syndicated loan has a five-year maturity, with a two-and-a-half-year grace period during which Tupras will not be required to make principal repayments, allowing the company to focus solely on interest payments, which will be made every six months.
This comprehensive financing package is designed to support the company’s sustainability-driven projects as part of its long-term transformation strategy. While Tupras aims to reduce its environmental footprint, particularly through emission cuts, it is also working to build a solid and diversified financial structure to support its strategic objectives.
Founded in 1983, Tupras operates four refineries with a total annual crude oil processing capacity of 30 million tons, covering nearly all of Türkiye's refining needs.
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