Türkiye Wealth Fund secures $1.18B syndicated loan without treasury guarantee

Türkiye Wealth Fund (TWF) has successfully secured a €1.1 billion ($1.18 billion) syndicated loan—the first in its history to be completed without a guarantee from the Turkish Treasury.

In a statement released Tuesday, the fund announced that it had raised a two-year syndicated loan totaling €837 million and $285 million, with participation from 20 banks across 12 countries.

Unlike previous borrowings, this loan did not include a government guarantee, marking a significant step in the fund’s ability to raise capital independently.

The interest rates for the loan were set based on global benchmarks, with the euro portion to be repaid at an annual rate of Euribor (Euro Interbank Offered Rate)—the average interest rate at which European banks lend to one another—plus 2%, and the dollar portion at an annual rate of SOFR (Secured Overnight Financing Rate)—a widely used benchmark that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral—plus 2.25%.

Strong demand from international investors

The syndicated loan was met with robust interest from global investors, with total demand exceeding more than twice the amount borrowed in 2023. Due to this strong appetite, TWF introduced a dollar-denominated portion in its syndicated loan program, adding diversification to its financing structure.

The transaction follows the structure of TWF’s previous syndicated loans in 2019 and 2023, both of which had a two-year maturity. However, the 2024 loan surpassed expectations, reaching a total of €1.1 billion. Compared to the maturing 2023 syndicated loan, this latest financing effort achieved a 139% rollover ratio, meaning the fund was able to refinance the expiring debt and secure a significant additional amount of capital.

This transaction follows two earlier international fundraising efforts by the fund—a eurobond issuance in February 2024, referring to a debt security issued in a currency different from the issuer’s domestic currency, and a sukuk issuance in October 2023, which is an Islamic financial certificate that functions similarly to a conventional bond.

A total of 20 banks took part in the syndicated loan, including 11 new institutions from four countries that had not participated in earlier transactions.

ICBC Türkiye Investment Securities Inc., Emirates NBD Capital Limited, and First Abu Dhabi Bank PJSC coordinated the transaction and served as lead arrangers. Emirates NBD Bank PJSC also handled administrative responsibilities as documentation and facility agent.

Founded in 2016, Türkiye Wealth Fund is a sovereign wealth fund owned by the Turkish government, with over $317 billion in assets.