Page 14 - bne_newspaper_September_28_2018

Southeast Europe
September 28, 2018 www.intellinews.com I Page 14
foreign banks to roll over FX debts. On a brighter note, the Turkish lira (TRY), made it past the 6-to- the-dollar threshold on September 27, partly as
a result of the loan news from Akbank. By around 17:30 local time it was 1.9% stronger on the day against the US dollar, trading at 5.9891.
Akbank and Turk Eximbank have increased pric- ing on syndicated loans to encourage interna- tional lenders to join the deals, banking sources told Reuters on September 4, with Turkey’s financial crisis showing no sign of abating. Pricing was pushed up on a $930mn loan for Akbank and a $350mn loan for Turk Eximbank to around 200bp for one-year tranches and around 300bp for two-year tranches, bankers told the news agency.
The lenders were said to have been in talks to renew their syndicated loans since the beginning of August.
Now markets await Turk Eximbank, Isbank and foreign-held local lenders to finalise syndicated loans in the renewal cycle. Adnan Yildirim, gener- al manager of Turk Eximbank, said on September 27 in a tweet that the bank had concluded a non- deal roadshow in London.
“Relief all around...,” Timothy Ash of Bluebay Asset Management said in an e-mailed comment al- though the jump in costs was not too encouraging.
In August 2017, Akbank secured a multi-currency syndicated loan facility from international markets in the amount of $1.15bn-equivalent, comprising of $543mnn and €515mn tranches.
The US dollar-equivalent of the 945mn part of the loan facility had a one-year tenor, whereas the two-year tenor was for $205mn.
The all-in costs for the one-year tranches were Libor+1.35% and Euribor+1.25%, and Libor+2.20% for the 2-year tranche.
Moody's Investors Service has lowered Turkey's country ceiling for long-term foreign currency bank deposits to B2 from B1, the rating agency said on September 24.
The forex liquidity risk of Turkish banks has heightened significantly amid the ongoing market volatility and currency collapse in Turkey. That
is highlighted by recent deposit outflows, Fitch Ratings warned on September 24 in a report on Turkish banks’ external debt.
COUNTRY REPORTS
Check out IntelliNews Pro’s Country Reports covering the 30 countries in Central & Eastern Europe/Commonwealth of Independent States.
A monthly round up of the most important economic, finance, business and political events, the reports are aimed at busy professional investors and companies that need to keep on top of the story.
To subscribe to the reports delivered by email get in touch with our sales staff for a trial.
T. +44 203 633 2008 E. sales@intellinews.com
Or go to bne.eu/welcome to see samples of this and other products.