Turkish private lender Akbank, owned by the Sabanci conglomerate, has obtained an $560mn-equivalent and 367-day syndicated loan in two tranches of $246mn and €284mn with all-in costs at Libor+2.25% and Euribor+2.00%, it said on October 8 in a stock market filing.

The renewal rate of the syndicated loan stood at 80% as the lender obtained in March last year a $700mn loan. However, Akbank noted in its filing that the total loan amount may be increased through the “accordion” feature of the facility until the drawdown date of April 9.

The costs of the loan compared lower than those of the March 2019 loan (Libor+2.50% and Euribor+2.40%) while only the cost of the euro tranche was slightly lower when held up against an October 2019 loan (Libor+2.25% and Euribor+2.10%), when the renewal rate stood at 83%.

The announcement of the Akbank loan came as Jason Tuvey of Capital Economics circulated a note entitled “Turkey: banks more vulnerable than in currency crisis”. “Turkey’s banks muddled through the [Turkish lira] currency crisis two years ago, but they are now in a weaker position to confront the economic and financial market fallout from the coronavirus outbreak,”

Turkish lenders’ syndicated loan renewal costs fell in the spring season of 2019 after booming in the autumn season of 2018 following the country’s currency crisis that peaked in August.

However, the renewal ratios are still low, the costs remain higher than the pre-crisis costs and two-year maturities have disappeared.

The Libor+2.50% and Euribor+2.40% costs seen in spring 2019 were almost double the Libor+1.30%s and Euribor+1.20%s seen a year before, while the two-year, one-day tranches seen in spring 2018 are no longer available.

On a positive note, the costs in the spring of 2019 compared lower than the Libor+2.75%s and Euribor+2.65%s seen in autumn 2018.

Despite concerns over a “coronavirus (COVID-19) sudden stop” in capital flows to emerging markets, Akbank has managed to again set the benchmark for its peers entering the Turkish lenders’ spring syndicated loan refinancing season.

State-owned Ziraat Bank has a $1.4bn and one-year loan obtained in March 2019 from Emirates NBD while Eximbank needs to renew a $100mn loan in April along with Ziraat Katilim ($250mn) and Vakifbank ($1.1bn).

In May, Yapi Kredi Bank ($1bn), Garanti BBVA ($784mn) and Isbank ($1.03bn) will be in the queue.

Also on April 2, Yildiz Holding-owned Ulker Biskuvi, a biscuit and confectionery producer that is one of Turkey’s largest food companies, said in a stock exchange filing that it obtained a $455mn syndicated loan with a maturity of three years.

Seven international banks, including Bank of America (global coordinator, bookrunner and initial mandated lead arranger), Rabobank, (bookrunner and initial mandated lead arranger) and Emirates NBD (bookrunner and initial mandated lead arranger) participated in the loan, according to Ulker.

The loan consists of a syndicated facility of $374mn and a parallel loan of €75mn provided by the European Bank For Reconstruction and Development (EBRD), the largest lender among eight international financiers in the transaction, the EBRD said on April 2 in a separate statement. The EBRD has previously provided a total of €100mn to support Ulker’s operations in Turkey and Kazakhstan.

The latest syndication loan is composed of two trenches of $110mn and €244, according to the filing by Ulker.

Ulker will use the loan to refinance a $375mn syndicated loan maturing this month, suggesting a renewal rate of 121%.

Ulker did not provide costs but it said interest payments will be made semi-annually.

The company has also a $450mn syndicated loan maturing in November 2020.

Lenders demonstrated unwavering appetite for Turkish debt, Global Capital reported on April 1 in a story entitled “Akbank and Ulker raise loans, lenders demonstrate resilience”.

Moody’s Investor Services said on March 31 that risks from the coronavirus crisis went beyond frontier markets to encompass emerging markets such as Turkey and Tunisia that are most reliant on foreign currency debt. 

The sudden economic stop will bring intense credit pressure to bear on borrowers worldwide as slumping cash flows and tight financing conditions weigh on creditworthiness, Standard & Poor’s (S&P) said on April 1 in its Global Credit Conditions report entitled “Triple Trouble: Virus, Oil, Volatility”.

 

Major external financing obtained by Turkish borrowers
		Total	Renewal	Maturity	Tranche	Cost	Tranche	Cost
		(mn)	Rate	(days)	1	1	2	2
Apr-20	Akbank	$560	80%	367	$246	Libor+2.25%	€284	Libor+2.25%
Apr-20	Ulker	$455	121%	3-year	$110		€244	€75
Mar-20	Turkcell	€50	ING	5-year		Euribor+1.95%
Jan-20	Borusan EnBW	$74	China	EBRD
Jan-20	Getir	$38	Moritz	Crankstart
Dec-19	Garanti	$133		6-year	IFC	OeEB	GGF
Dec-19	Garanti	$300	China	3-year
Dec-19	Asyaport	$24	EBRD, IFC
Dec-19	Migros	TRY31	EBRD	bond
Dec-19	May Seed	€10	EBRD			TLREF
Dec-19	TKYB	€45	KfW	40-year	solar
Dec-19	QNB Finansbank	$457	new	367	$59	3-year 1-day $150	€184	3-year 1-day €40
Dec-19	ISMEP	$300	AIIB
Dec-19	Denizbank	$1,100	syndicated	new		Libor+2.25%		Euribor+2.10%
Dec-19	En. Ministry	$200	IBRD, CTF
Dec-19	Enerjisa	$100	EBRD			TLREF	TRY-denominated
Dec-19	TKYB	$200	AIIB	15-year
Dec-19	Ceyport	€18	EBRD
Dec-19	oBilet	$4	EBRD	equity
Dec-19	Turkcell	€500	China	8-year	grace	3-year
Nov-19	Mersin	€17	AFD
Nov-19	Vakifbank	$580	82%	367	$240	Libor+2.25%	€309	Euribor+2.10%
Nov-19	Vakifbank	$150		3.5-year
Nov-19	TuREEFF	$350	EBRD, EU	since 2015
Nov-19	Central bank	$5,000	Qatar	swap
Nov-19	Garanti	$802	87%	367	$230	Libor+2.25%	€519	Euribor+2.10%
Nov-19	Finansleasing	€50	EBRD
Nov-19	Istanbul M.	€40	BSTDB	7-year		2.5-year grace
Nov-19	Istanbul M.	€198	BNP Paribas	11.3-year		1.8-year grace
Nov-19	Istanbul M.	€80	BNP Paribas	7-year		2.5-year grace
Nov-19	Eximbank	€500		1-year		Libor+2.35%		Euribor+2.25%
Nov-19	Sisecam	€100	EBRD					Euribor+2.4%
Nov-19	Istanbul M.	€86	AFD	10-year		3.5-year grace
Nov-19	TSKB	€85	AFD
Nov-19	Isbank	$820	84%	367	$215	Libor+2.25%	€545	Euribor+2.10%
Oct-19	TEB	$401	75%	367	$62	Libor+2.25%	€306	Euribor+2.10%
Oct-19	Yapi Kredi	$950	91%	367	$370	Libor+2.25%	€520	Euribor+2.10%
Oct-19	Trakya Cam	€200		3-year	€175	Euribor+2.65%	€25	Euribor+2.95%
Oct-19	Istanbul	€110	Deutsche	5-year
Oct-19	Vakifbank	$417	securitization	7-year		3-year grace
Oct-19	Istanbul	€86	AFD
Oct-19	Akbank	$810	83%	367	$402	Libor+2.25%	€374	Euribor+2.10%
Sep-19	Vakifbank	$140	China	1-year
Sep-19	TKYB	€14	KfW	20-year
Sep-19	Isik Organic	€16	EBRD
Sep-19	TSKB	$200	China Development Bank
Aug-19	Istanbul	€73	BSTDB	7-year		3-year grace
Aug-19	Istanbul	€98	EBRD	7-year		3-year grace
Aug-19	ING Turkey	$305	49%	367	$96	Libor+2.50%	€190	Euribor+2.40%
Aug-19	Educ. Min.	€268	IBRD
Jul-19	TSKB	$177	80%	367	$68	Libor+2.00%	€98	Euribor+2.00%
Jul-19	Efeler	$350	AIIB, $100mn	EBRD, $60	TSKB$50	Isbank, $90mn	BSTDB, $20	ICBC Turkey, $30mn
Jul-19	Ilbank	€500	World Bank	30-year	5-year grace
Jun-19	Eximbank	€180	ING Bank	5-year		3-year grace
Jun-19	Suez-Altas	TRY57.5	EBRD
May-19	Eximbank	$350	ICBC	2.8-year		2.8-year grace
May-19	TSKB	€50	EBRD
May-19	Isbank	$1,030	69%	367	$324	Libor+2.50%	€645	Euribor+2.40%
May-19	Garanti	$784	63%	367	$326	Libor+2.50%	€409	Euribor+2.40%
May-19	Railport	$60	EBRD, ICBC Turkey
May-19	Yapi Kredi	$1,000	77%	367	$350	Libor+2.50%	€607	Euribor+2.40%
Apr-19	Sarten Ambalaj	€25	EBRD
Apr-19	Vakifbank	$1,100		367	$280	Libor+2.50%	€724	Euribor+2.40%
Apr-19	Turksat	$325	UK Export Finance
Apr-19	Finance Ministry	€150	AFD
Apr-19	Ziraat Katilim	$250		367
Apr-19	Eximbank	$630		1-year, 2-year	$184	Libor+2.75%	€398	Euribor+2.65%
Apr-19	Eximbank	$84	Mitsubishi	2-year	$50	2-year grace	€30	2-year grace
Mar-19	Ziraat	$1,422	Emirates NBD	1-year	$470	Libor+2.50%	€849	Euribor+2.40%
Mar-19	Akbank	$700		367	$356	Libor+2.50%	€303	Euribor+2.40%
Mar-19	Arcelik	TRY1,000	EBRD
Mar-19	TWF	€1,000	Coordinator: Citi, ICBC	2-year		Euribor+2.75%
Mar-19	Ziraat	$75	NCB	1-year
Feb-19	Ziraat	$50	NCB	1-year
Feb-19	Migros	TRY40	EBRD	Purchase of local bonds issued total of TRY200mn
Feb-19	Ziraat	$100	Citibank	1-year
Feb-19	Hayat Varlik	TRY100	EBRD
Feb-19	State Hydro Works	$222	IBRD
Feb-19	Tam Faktoring	TRY100	EBRD
Feb-19	Istanbul Municipality	€100	Societe General	11.5-year		2-year grace
Jan-19	State Forestry	$8	IFAD
Jan-19	Eximbank	$500	Citibank	5-year		5-year grace