Türkiye’s refiner Tupras secures $500M environmental loan from global lenders – Türkiye Today
A distant view of Tupras facilities in Kocaeli, Türkiye, accessed on May 15, 2025. (AA Photo)
May 15, 2025 12:02 PM GMT+03:00
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.
A general view of Tupras’s Izmit refinery, one of Türkiye’s largest industrial facilities located in Kocaeli, accessed on May 15, 2025. (Adobe Stock Photo)
Loan backed by leading international banks
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 Tupras logo is seen on a storage tank at one of the company’s refinery sites in Türkiye, accessed on May 15, 2025. (AA Photo)
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.
May 15, 2025 12:02 PM GMT+03:00
