Turkish banks and businesses secure more than $ 6.9 billion in international funding amid outbreak
Turkish banks and businesses have achieved significant success in securing nearly $ 6.91 billion (TL 47 billion) in international funding during the period when the coronavirus pandemic disrupted economic activity and severely affected the country. global economic system and financial markets.
The funding made it easy for institutions to weather the financial woes of April and May, when debt yields are most intense.
Turkish banks including Akbank, Ziraat Bank, VakıfBank, QNB Finansbank, Yapı Kredi Bank, Türk Eximbank, Garanti BBVA and Iş Bank, and confectionery giant Ülker Bisküvi secured a syndicated loan of $ 6.3 billion in April and May, marked by difficult market conditions due to the outbreak. The banks have also managed to secure nearly $ 600.6 million in non-union funding from several international organizations, including the European Bank for Reconstruction and Development (EBRD).
The institutions concerned have thus achieved a renewal rate of syndicated loans of 91% over the past two months, taking into account the syndicated loan of $ 9.93 billion used in 2019.
In addition, borrowing costs during this period were also 25 basis points lower in dollars and 40 basis points in euros compared to last year. The cost of syndicated loans is “Libor + 2.25%” in dollars and “Euribor + 2%” in euros.
Private lender Akbank was the first to secure a syndicated loan renewal, having renewed 86% of last year’s $ 700 million loan by guaranteeing a one-year syndicated loan of $ 605 million from 1 to April 8.
Public lender Ziraat Bank succeeded in renewing 75% of last year’s $ 1.42 billion syndicated loan by securing $ 1.06 billion on April 9.
Another public lender, VakıfBank, renewed 88% of last year’s $ 1.09 billion by securing a syndicated loan of $ 950 million on April 29.
QNB Finansbank, whose syndicated loan amounted to $ 200 million last year, raised $ 225 million on May 14 from international lenders, posting a credit renewal rate of 128%.
In addition, another private lender, Yapı Kredi, achieved a loan renewal rate of 84%, as he raised $ 870 million between May 15 and May 27, compared to $ 1.03 billion last year. .
After using a $ 407 million syndicated loan last year, Türk Eximbank received a syndication loan worth $ 723 million from May 14 to 29 amid the economic fallout from the coronavirus. The institution thus managed to post a record loan renewal rate of 178%.
Guaranteed BBVA secured a syndicated loan of $ 594 million on May 20, renewing 79% of last year’s $ 755 million. After using a loan of $ 950 million last year, Is Bank managed to mobilize a syndicated loan of $ 792 million on May 21, reaching a renewal rate of 83%.
Turkey’s leading cookie maker, Ülker Bisküvi, weathered the global market turmoil by also securing international funding to continue its operations smoothly.
It raised a total of $ 455 million from eight lenders on April 2 despite market volatility. The loan consisted of a syndicated facility of $ 374 million and a parallel loan of € 75 million ($ 81 million) from the EBRD. The company therefore renewed 121% of last year’s loan.
One of Turkey’s best-known confectioneries, Ülker produces cookies, cakes, wafers, chocolate bars and chocolate coated cookies. It sells products all over Turkey and exports to Europe, North America, Africa, Asia and the Middle East.
The EBRD is a major investor in Turkey. Since 2009, it has invested nearly 12 billion euros in various sectors of the country’s economy, with almost all investments in the private sector.
During the period when global economies were at a standstill, five Turkish banks also managed to receive non-union funding worth $ 600.6 million from various international institutions, mainly the EBRD.
Denizbank, QNB Finansabnk, Garanti BBVA, Yapı Kredi and Türk Eximbank received $ 175 million, $ 136 million, $ 104.6 million, $ 100 million and $ 85 million respectively in May.