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syndicated loan renewals. Costs were the same as borne by other local lenders at Libor+2.50% and Euribor+2.40%.
The total amount of Isbank’s loan equalled $1bn, while its roll-over rate of 69% was higher than Garanti Bank’s latest 63% but lower than Yapi Kredi Bank’s 77%, Seker Invest said on May 24 in its daily market watch.
Garanti renews syndicated loan at higher costs, lower roll-over ratio.
Turkey’s Garanti Bank has signed for a 367-day syndicated loan, consisting of two tranches of $326mn at a cost of Libor+2.50% and €408.75mn at a cost of Euribor+2.40%, the lender said on May 17 in a bourse filing. Garanti targeted borrowing $600mn but the final amount was set at a total of $783.8mn after demand of $1bn was encountered, the lender said in a press release. In May 2018, the lender renewed the full amount of its €1.2bn syndicated loan. The loan consisted of three tranches: a $457mn, 367-day tranche had a cost of Libor+1.30% while a €670.5mn, 367-day tranche had a cost of Euribor+1.20% and a $145mn, 2-year and 1-day tranche had a cost of Libor+2.10%. In December 2018, the lender obtained a $1.3bn syndicated loan in four tranches with maturities of 367-days, 2-years 1-day and 7-years. The lender did not provide any further details on the costs. In January 2019, Garanti Bank said in its operating guidance that it expected its syndication rollovers to be less than 100% due to high costs and comfortable liquidity.
Banks’ refinancing progresses undeterred. Despite new waves of economic turbulence now hitting Turkey, the Turkish lenders’ spring loan refinancing season that takes place in April and May is progressing undeterred. However, costs are higher and roll-over ratios are declining. Libor+2.50% and Euribor+2.40% costs are almost double the Libor+1.30%s and Euribor+1.20%s seen a year ago while the 2-year 1-day tranches seen in spring 2018 are not available currently. However, the spring 2019 costs compare lower than the Libor+2.75%s and Euribor+2.65%s seen in autumn 2018 following the balance of payments crisis in August.
Private lender Yapi Kredi Bank on May 7 struck a $1.03bn worth of 367- day syndicated loan agreement consisting of two tranches of $350.4mn and €606.8mn. The loan will be used for trade finance purposes. The all-in cost will be Libor+250bp and Euribor+240bp. A total of 49 financial institutions from 21 different countries are participating in the loan deal. Bank of America Merrill Lynch, UniCredit and Mizuho Bank acted as deal coordinators . In May 2018, Yapi Kredi obtained a $1.5bn syndicated loan. That loan consisted of four tranches. A 367-day tranche worth $332mn had a cost of Libor+1.30%, a 367- day tranche of €898mn had a cost of Euribor+1.20%, a 2-year 1-day tranche of $50mn had a cost of Libor+2.10%, and a 2-year 1-day tranche of €25mn came with a cost of Euribor+1.50%. The renewal ratio stood at 111% and the cost was 15bp lower compared to May 2017. In October 2018, the lender obtained a 367-day syndicated loan of $1.1bn. A total of $275mn of the tranche had a cost of Libor+2.75% while €691mn of it had a cost of Euribor+2.65%. Yapi Kredi was the third largest private bank in Turkey as of the end of 2018 with TRY373.4bn worth of assets. It is Turkey’s fifth largest bank by assets. Koc Financial Services, a 50:50 JV between Turkey’s Koc Group and Italy’s UniCredit, controls an 81.9% stake in Yapi Kredi while the remaining 18.1% is publicly traded on Borsa Istanbul.
In March, Akbank, owned by Turkish conglomerate Sabanci, obtained a $700mn 367-day syndicated loan. A $356mn tranche has a cost of Libor+2.50% while a €303mn tranche was pegged with Euribor+2.40%. Akbank’s syndicated loan renewal costs last year rose by 140bp to Libor+275bp and Euribor+265bp in September compared to April.
Also in March, state-owned lender Ziraat secured a syndicated loan worth $1.43bn. The total costs of the loan, which consists of $470mn and €849mn, are Libor+2.5% for the US dollar tranche and Euribor+2.4% for the euro tranche, respectively.
46 TURKEY Country Report June 2019 www.intellinews.com