Akbank renews sustainability syndicated loan, adding 3 year tranche

ISTANBUL

Private lender Akbank has successfully renewed its $600 million syndicated loan facility with a syndicated sustainability loan of $750 million.

The loan has three tranches with maturities of one year, two years, and three years.

A total of 51 banks from 21 countries participated in the facility, with 13 new participating banks, the lender said in a statement.

“We are very proud to lead another successful transaction and reinforcing the trust that both Akbank and the Turkish economy have cultivated,” said Kaan Gür, the bank’s CEO.

With demand exceeding $1 billion, Akbank successfully renewed the loan at $750 million, achieving a 125 percent rollover ratio, according to Gür.

“By including a three-year tranche in our sustainability syndicated term loan, we have met investors' demand for longer term Akbank risk,” he added.

The bank stated that the all-in costs are SOFR + 1.6 percent and Euribor + 1.35 percent for the one-year tranche, SOFR + 2 percent and Euribor + 1.75 percent for the two-year tranche, and SOFR + 2.25 percent and Euribor + 2 percent for the three-year tranche.

With its October 2024 syndicated term loan facility, Akbank had reopened the longer-term tranches in the Turkish syndication loan markets.

“Also, Akbank was the pioneer bank in Türkiye which linked the syndicated term loan facility with its Sustainable Finance Framework with its April 2024 syndicated term loan facility,” the lender said.