Turkiye Garanti Bankasi secures UK bond issuance approval

Turkiye Garanti Bankasi, a unit of Spain’s BBVA, said on Friday it had received approval from UK regulators to issue bonds denominated in British pounds.

The Istanbul-based bank did not disclose the size or timing of the issuance, nor did it provide details on the bond’s maturity profile or coupon structure. The approval follows a recent trend of Turkish lenders tapping international capital markets to bolster liquidity amid elevated domestic borrowing costs and a challenging funding environment.

Regulatory filings and industry sources indicate that Garanti Bankasi has been expanding its offshore funding channels to reduce reliance on domestic markets, where high interest rates have increased borrowing costs. The move aligns with broader efforts by Turkish financial institutions to diversify funding sources and mitigate risks associated with currency volatility and rising global interest rates.

The approval does not guarantee the execution of the bond sale, as market conditions and investor demand will determine the final terms. Turkish banks have increasingly turned to foreign currency-denominated debt issuances in recent years to access deeper pools of capital and stabilize funding profiles amid domestic economic uncertainty.

Garanti Bankasi, one of Turkey’s largest private lenders by assets, has not commented beyond the initial announcement.