Vakifbank borrows $870M syndication loan
Outside view of a Vakifbank branch. (AA Photo)
Vakifbank obtained a syndication loan totaling $870 million, comprising $518.5 million and €331.4 million ($348.4M), according to a written statement from the bank on Tuesday.
The sustainability-themed loan, with a 367-day maturity, was acquired at a cost of Secured Overnight Financing Rate (SOFR) plus 1.75% for the dollar tranche and Euribor plus 1.50% for the euro tranche.
Vakifbank successfully renewed its second syndication loan of the year at 133%, having raised $10.2 billion from international markets since the beginning of the year.
‘Testament to confidence in Türkiye’
Vakifbank General Manager Abdi Serdar Ustunsalih emphasized that the transaction reflects the bank’s commitment to sustainable financing goals and serves as evidence of international confidence in Türkiye.
Highlighting that the bank’s sustainability-themed syndication loans have reached $1.8 billion, Ustunsalih stated, “With this achievement, our bank has become the institution with the highest level of international borrowing and one of the leading banks in terms of syndicated loan balances. This milestone reaffirms our pioneering position in international funding.”
Syndication loan refers to a large loan provided by a group of lenders, called a syndicate, to a single borrower. These loans are typically used by corporations, financial institutions, or governments that require substantial funding, which might be too large or risky for a single lender to handle.
