Akbank has successfully rolled over its March syndicated loan with around 160% oversubscription, securing USD 700 million.
The cost of the 1-year syndicated loan was Libor + 2.50% and Euribor + 2.40% indicating a 25bps improvement in costs compared to the bank’s September 2018 syndicated loan facility.
Akbank had secured USD 1.2 billion equivalent Syndicated Term Loan Facilities on March 26, 2018 comprising a 367 day term facility of USD 900 million equivalent, and a 2 year-facility of USD 250 million equivalent.
The bank announced back in January that it will only roll-over the USD 600 million equivalent of the syndicated loan as a consequence of Akbank’s strong liquidity.
The syndication was well-received in the market and garnered an overwhelming global response resulting in a significant oversubscription by c. 1.60x – equivalent to USD 950 million.
On the back of robust oversubscription, Akbank slightly revised its initial target of USD 600 million and increased the size of the syndicated loan facility to USD 700 million.
Had the bank decided to roll-over the original USD 900 million equivalent with a 367 day term facility of its maturing 2018 syndicated loan, it would have still achieved around 105% roll-over ratio.
The March 2019 syndicated loan facility amassed strong appetite from 34 banks across 15 countries.
Compared to Akbank’s September 2018 syndicated loan:
Number of participant banks increased from 23 to 34
Number of participant countries increased from 11 to 15
The deal has attracted 8 new participant banks from Europe, Asia, and the Gulf.