Page 21 - TURKRptApr21

Aug-20
TKYB
$250
World Bank
25-year
10-year grace
Izmir Municipality is in external borrowing talks for €1bn metro project. The Turkey Wealth Fund (TWF/TVF) obtained a €1.25bn and two-year
syndicated loan at Euribor+2.25%.
Industrial & Commercial Bank of China (ICBC) was the lead book-runner and Citigroup also acted as a bookrunner. HSBC was the facility agent.
Arab Banking Corporation, Emirates NBD, ING, Intesa, JPMorgan, Qatar National Bank, Sumitomo Mitsui, BBVA, Bank of America, Barclays and Societe Generale participated in the deal.
In March 2019, TWF obtained a €1bn and 2-year syndicated loan at Euribor+2.50%.
The fund said the transaction closed on March 22, when the previous loan matured.
But all the negotiations were carried out and completed last week, prior to the March 19 firing of Turkey's central bank governor by presidential decree, unnamed people familiar with the matter told Bloomberg.
Since February, Akbank has been in the market to launch the spring syndicated loan renewals season for Turkish banks.
Akbank sets the costs for its peers.
Ziraat Bank was also said to have launched the process to renew its loan while some other banks may have like TWF cut deals prior to the shock shake-up at Turkey's central bank.
Since 2018, Turkey’s external debt load has been highlighted amid each economic shock, but sharp lira appreciation calls have been issued between the shocks.
Turkey, meanwhile, has not experienced problems in rolling over its external debt. The costs rise after a shock but the finance industry have not paved the way to a Turkey default so far.
Total
Renewal
Maturity
Tranche
Cost
Tranche
Cost
21 TURKEY Country Report April 2021 www.intellinews.com