Turkey’s Akbank borrows $1.4 billion syndicated loan

Turkey’s Akbank borrows $1.4 billion syndicated loan

ISTANBUL - Hürriyet Daily News
Turkey’s Akbank borrows $1.4 billion syndicated loan

Akbank’s CEO Hakan Binbaşgil (2 L) and Vice President Hülya Kefeli (2nd R) are seen in the agreement-signing ceremony in this photo. Company photo

Akbank, one of Turkey’s leading banks, has signed a syndicated loan facility worth $1.4 billion with the participation of one of the world’s most prominent banks.

Akbank finalized the 790 million euro, $348 million syndicated loan from 44 banks of 22 countries with the agreement-signing ceremony held on March 21 in Istanbul.

“We have signed a syndicated loan that is the lowest-cost loan in the Turkish banking sector in the last 15 years,” Akbank CEO Hakan Binbaşgil said.

Binbaşgil stated that this syndicated loan reflected Akbank’s power during a period where international markets were seeking stability. “We will use this loan, which is provided with the increasing participation of international banks, in order to create value for Akbank’s customers and shareholders and finance the real sector to support economic growth,” he said.

Second loan $1.6 billion due in August

Hülya Kefeli, Executive Vice President in charge of International Banking, said Akbank receives syndicated loans twice a year, adding that it had a second syndicated loan around $1.6 billion due in August.

Kefeli stated that the $3 billion loan was received for financing foreign trade. Akbank decreased credit costs 25 base points lower than other Turkish banks that borrowed a syndicated loan, she said.

“Turkey’s share in the international trade volume is 1 percent. This loan will contribute to increasing it to 1.5 percent in the framework of the 2023 Targets.”

Kefeli underlined that even countries as far away as Chili participated their syndicated loan this year. “The result shows Turkey’s success in the economy is monitored around the world and should be considered a sustainable dynamism that is durable against foreign shocks,” she said.

This year, Akbank received its 33rd syndicated loan since 1994. Kefeli said they borrowed only one loan between 1994 and 1997. “We have finalized 31 syndicated loans worth $21 billion for the real sector since 1997. This amount is equal to four airports and 50 harbor projects,” she added. Kefeli noted that Akbank started Turkish Lira bond exports abroad for the first time in January, and it now borrowed the lowest-cost syndicated loan in the banking sector. It also increased the amount from $1.2 billion in March 2012 to $1.4 billion this month.