Page 31 - TURKRptNov22

So far in 2022, the EBRD has sold a total of Turkish lira (TRY) 18bn ($942mn) worth of such bonds at 49 auctions.
The World Bank Group's International Finance Corporation (IFC), the European Investment Bank (EIB), JPMorgan (New York/JPM), the International Bank for Reconstruction and Development (IBRD, a unit of the World Bank) and the African Development Bank (AFDP) were also among the active issuers on the market.
Supranational lira papers offer higher returns compared to domestic lira papers. As a result, Turkish investors prefer such bonds when there are no restrictions.
Akbank (AKBNK), the big-cap unit of Turkish conglomerate Sabanci Holding (SAHOL), has obtained a 367-day syndicated loan in two tranches of $225mn and €178mn, the lender said on October 26.
The cost of the USD-tranche stood at the guaranteed overnight financing rate (SOFR) plus 425bp. The cost of the EUR-tranche was the euro interbank offered rate (Euribor) plus 400bp.
The exchange rate-adjusted renewal rate was very low, standing at 60%, while spreads marked record high levels.
Benchmarks are achingly high at the moment as SOFR surpassed the 3%-level, compared to the 0.05% seen in October 2021, while 12-month Euribor is hovering in the 2.70%s, compared to the minus 0.5% recorded in October 2021.
Recently, all the benchmarks have been on the rise in parallel with the global monetary tightening trend.
In October 2021, Akbank obtained a 367-day syndicated loan in two tranches of $460mn and €207mn. The cost of the USD-tranche was lower by 35bp at Libor+2.15% and the cost of the EUR-tranche was lower by 50bp at Libor+1.75% compared to the Libor+2.50% and Euribor+2.25% seen in October 2020 (see full list below).
In June 2023, SOFR is to replace the current USD-benchmark London Interbank Offered Rate (Libor). One-year Libor currently stands at over 5%.
Turkish banks conduct 367-day—a ‘trick’ maturity for registering loans as long-term by using two extra days—syndicated loan renewal seasons twice a year, with one season in spring (April-May) and the other in the autumn (October-November).
31 TURKEY Country Report November 2022 www.intellinews.com