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Turkiye Sinai Kalkinma Bankasi (Industrial Development Bank of Turkey, or TSKB) has obtained a 367-day syndication loan in two tranches of €97.5mn and $67.5mn, the lender said on July 9 in a stock exchange filing. The all-in costs at TSKB’s syndicated loan renewal stood at Libor+200bps and Euribor+200bps for each tranch, lower than Libor+250bps observed a year ago, Seker Invest said on July 10 in its daily bulletin. TSKB raised a total of $177mn via the syndicated loan agreement, pointing to a rollover rate of 80% compared to 69% observed at Isbank’s latest syndicated loan renewal and 77% at Yapi Kredi Bank’s renewal, according to the Istanbul-based brokerage.
On July 9, the lender said in a separate stock exchange filing that it has applied to the Capital Markets Board of Turkey (SPK) to issue up to $600mn worth of eurobonds abroad. The new issue limit will be added upon the $400mn already approved by the SPK in 2018, the statement added. TSKB’s senior unsecured eurobonds worth of $350mn will mature in October 2019, according to an investor presentation on the company’s website. On June 27, Fitch Ratings affirmed the bank's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+' with a negative outlook. On June 19, Moody’s Investor Service downgraded TSKB’s Long-term Issuer Ratings (Local and Foreign Currency) to B3 with a negative outlook. Isbank Group has a 50.92% share in TSKB while state-run Vakifbank controls an 8.38% and a 38.6% is on free-float on Borsa Istanbul. TSKB was Turkey’s 13th largest lender by assets, among a total of 47 local lenders, with a total asset volume of TRY42bn, around 1% share in total banking industry assets, as of end-Q1, according to the latest data from the Banks Association (TBB).
34 TURKEY Country Report August 2019 www.intellinews.com