With its syndicated loan renewal, Akbank has provided US $560 million into the Turkish market. The loan has a 1 year maturity with a cost of Libor +2,25 and Euribor +2,00.24 banks from 12 countries participated, to this successful loan renewal.
“In a period marked by a decrease in access to liquidity, we provided $560 million FX liquidity to Turkey with our syndicated loan,” Akbank CEO Hakan Binbaşgil noted, “The global Covid-19 pandemic has a negative impact on real economies and daily life as well as on financial markets. Along with the difficult access to liquidity and FX resources, the transition of many companies and banks to remote working affects the ratification process of syndicated loans. In these challenging conditions, Akbank successfully renewed its syndicated loan. Despite the negative developments in the markets, we have improved the costs by 25 bps in USD tranche and 40 bps in Euro tranche compared to our March 2019 syndication deal. Thus, we have lowered the pricing of our 1-year maturity syndicated loan to Libor+%2,25 and Euribor+%2,00. In spite of significant uncertainty and a lowered interest rate our syndicated loan facility has once again attracted a strong global response from international banks.”
“The transaction indicates international markets’ confidence in Akbank and the Turkish banking sector,” added Binbasgil Binbaşgil, outlining that given the market conditions, a new feature known as an ‘accordion’ mechanism has been included to provide flexibility and said: “With this innovative approach, banks which have difficulties in meeting the deadline due to working hour constraints will be able to participate to our syndication from the signature date of the transaction to April 9 - the withdrawal date of the loan. Thus, the potential creditor banks are able to participate over a flexible time period. Through this specific feature of our transaction, over the amount signed today, the contribution of participants that join up to the loan withdrawal date will be added and the total syndicated loan amount will be finalized on April 9. Our syndication renewal is a concrete sign of confidence in Akbank and Turkey’s banking sector even in this tough period. With stable and transparent management, international banking standards, a strong balance sheet and excellent digital infrastructure, Akbank will continue to support Turkey’s economy, as it has for the past 72 years. In this difficult period, we will continue to support our economy whenever needed.”
In his statement, Levent Celebioglu, Executive Vice President of Akbank Corporate & Investment Banking underlined: “In successfully completing our transaction despite the turbulence in international markets, our corresponding banks continued their support for us, despite all the difficulties they have, allowing us to complete this transaction successfully. I would like to thank to our correspondent banks with whom we have strong and fiduciary relationships, in some cases for over 30 years.”