Bloomberg/Ismail Ferdous

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Akbank cuts margin on syndicated loan as refinancing wave starts

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Akbank is offering a 185 basis-point margin on the dollar tranche, and 170 basis points on the euro portion.

Sunday 08, September 2019

Akbank, Turkey’s second-largest lender by market value, is seeking a syndicated facility at lower interest rates, a year after the bank increased loan margins amid depreciation in the lira, reported Bloomberg.

Akbank’s spokesman said that the dual-currency loan, due next month, is being refinanced for another 367 days. The deal size is not final, though the outstanding amount is at $285 million and EUR 591 million ($648 million).

The deal is the first of a slew of annual refinancing to come from Turkey’s banks and borrowers that follow are expected to mirror Akbank’s pricing. A year ago, Turkiye Is Bankasi paid the same terms as Akbank, which clinched a refinancing deal at the height of the country’s economic crisis. Yapi ve Kredi Bankasi has around $1 billion of loans due next month.

The Turkish lender paid 200 basis points on a dollar tranche and 190 basis points on a euro facility when it completed a $700 million loan of the same tenor in March

Bank of America Merrill Lynch, Emirates NBD and Standard Chartered are coordinators on the refinancing and commitments are expected by the end of September 2019, with a closing scheduled for early October.

 

TAGS : Akbank, dual-currency loan, Turkiye Is Bankasi, Yapi ve Kredi Bankasi, Standard Chartered, Emirates NBD, Bank of America Merrill Lynch

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