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The cost of the EUR tranche was Euribor+2.25% and the USD tranche has a Libor+2.50% cost.
The loan has an accordion feature and Turk Eximbank expects a 10% increase in total funding in coming days, Reuters reported.
In April 2019, Eximbank obtained a $630mn syndicated loan with an $84mn tranche having a 2-year maturity.
Yapi Kredi and Vakifbank’s costs were identical to those of the benchmark set by Akbank in April, while Eximbank’s costs were 25bp higher.
Turkey’s largest private lender by assets, Isbank, has signed an $800mn syndicated loan deal with two tranches, one of $208mn and the other of €539mn, the lender said on May 21 in a stock exchange filing.
The costs were identical to those of the benchmark set by Akbank at the beginning of April at Libor+2.25% and Euribor+2.00%, while the rollover rate stood at 78%.
Isbank was the last Turkish lender to complete the renewal of its syndicated loan in the spring syndicated loan refinancing season. However, the final results in relation to the accordion features on the Yapi Kredi and Eximbank loans are still awaited. Yapi Kredi said its accordion would continue until May 27 while Eximbank did not specify a time-frame.
Amid coronavirus (COVID-19) woes, Akbank again managed to set the benchmark for peers entering the spring season. However, the accordion is a new feature that has emerged and, notably, the European Bank for Reconstruction and Development (EBRD) and the World Bank’s International Finance Corporation (IFC) have supported the Turkish lenders’ rollovers.
The EBRD has extended another $125mn-equivalent Turkish lira- (TRY-) denominated loan to Turkish power grid operator Enerjisa Enerji.
The new funds follow the $100mn extended by the EBRD to Enerjisa last December. They are denominated in Turkish lira to avoid a currency mismatch. The loan is linked to the new Turkish Lira Overnight Reference Rate (TLREF) benchmark, the EBRD said on May 12 in a press release.
The development bank has invested €450mn in Turkey so far this year. It will invest at least €1bn in 2020 as a whole, Suma Chakrabarti, head of the EBRD, told Turkey’s government-run Anadolu Agency news service on May 12.
The lender invested €1bn in Turkey last year and has committed a total of €12bn since 2009. The EBRD’s €6.7bn Turkey portfolio is the largest among the 38 economies where the Bank invests.
Turkish lender QNB Finansbank is to ramp up trade activities and lending to small businesses amid the coronavirus (COVID-19) pandemic with a new €100mn financing package provided by the European Bank for Reconstruction and Development (EBRD), the EBRD said on May 14.
In parallel, QNB Finansbank has mobilised US$ 255mn from nine international lenders, and has agreed a €25mn loan from Proparco, a French development financial institution, to support agriculture.
Societe Generale is providing €25mn as a B-loan under the EBRD’s A/B syndication structure, supplementing the €80mn loan provided by the EBRD in 2018 for the construction of a new 7.2-kilometre metro line along
37 TURKEY Country Report June 2020 www.intellinews.com
