Istanbul-listed QNB Finansbank (QNBFB), a unit of Qatar National Bank (QNB), has obtained a $500mn sustainability-linked 367-day syndicated loan in tranches of $242mn and €236mn, the lender said on November 30.
A total of 45 banks from 26 different countries, including 16 newcomers from four new countries, participated in the facility.
Mizuho Bank (Tokyo/8411) and US-based The Commercial Bank (TCB) acted as coordinators while Standard Chartered Bank (London/STAN) served as sustainability coordinator.
The sustainability criteria include commitments to extend loans in Turkey’s earthquake-hit region and to close gender gaps in salaries.
The total costs were released in line with the benchmarks set by Akbank (AKBNK), a unit of Turkish conglomerate Sabanci Holding (SAHOL), at the guaranteed overnight financing rate (SOFR) plus 350bp and the euro interbank offered rate (Euribor) plus 325bp.
The rollover rate stood at 108%. In November 2022, Finansbank obtained a $545mn loan at SOFR+425bp and Euribor+400bp. The renewal rate stood at 104%.
In parallel with local peers, QNB Finansbank, the eighth largest bank in Turkey with Turkish lira (TRY) 862bn ($30bn) of assets at end-September, has a B-/Stable (one notch below Turkey’s sovereign rating and six notches below investment grade) from Fitch Ratings and a B3/Stable (six notches below investment grade in line with Turkey’s sovereign rating) from Moody’s Investors Service.
QNB has another syndicated loan. In May, it rolled its syndicated loan at a 102% rollover rate in obtaining a $329mn loan at record high spreads, namely SOFR+425bp and Euribor+400bp.
Chart: QNB Finansbank’s FX-denominated non-deposit funding amounted to $4.9bn as of October.
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