Akbank has provided resources to Turkey’s economy by its USD 810 million syndicated loan facility
Akbank’s syndication garnered an overwhelming global response resulting in a significant oversubscription by c. 1.43x – equivalent to USD 810 million although the bank had previously announced that it would only roll-over the USD 700 million equivalent of the syndicated loan. Akbank revised its initial target of USD 700 million and increased the size of the syndicated loan facility to provide USD 810 million of resources to Turkey’s economy.
We have once again pioneered the market by setting the pricing of the syndicated loan
Akbank CEO Hakan Binbaşgil underlined that the bank has successfully concluded the syndicated loan facility and commented, “We have improved the costs by 50 bps in USD tranche and 55 bps in Euro tranche compared to our September 2018 syndication deal. As a consequence, we have lowered the pricing of our syndicated loan to Libor+2,25% and Euribor+2,10%. Although we lowered the pricing, our syndicated loan facility has attracted overwhelming global response from international banks.Our initial target was to only roll-over the USD 700 million equivalent of the September 2018 facility. However, on the back of a robust oversubscription of over USD 1 billion from foreign banks, we increased the size of the syndicated loan facility to USD 810 million to meet the strong interest to our deal. Compared to our September 2018 syndicated loan, we widened our investor base by increasing the number of participant countries from 11 to 19; and the number of participant banks from 23 to 31. Our deal attracted strong demand from participant banks located in Qatar, Kuwait and Russia that haven’t invested in Turkish syndicated loan deals for a long time.”
Positive developments regarding the oversubscription, pricing and number of participants indicate global market’s confidence in the potential of Akbank and Turkish banking sector
Binbaşgil added: “Positive developments regarding the oversubscription, pricing and number of participants indicate global market’s confidence in the stability of Akbank and Turkish banking sector. We continue to provide support to Turkey’s future through our strong financials, our investment in our technology and employees and resources we secured through our successful international borrowings.”