Denizbank tops Turkish banking sector in syndicated loans

Denizbank secured the highest syndication loan volume in the Turkish banking sector this year, raising $2.3 billion from three separate acquirements.

The third syndication loan of the year was finalized with the participation of 54 financial institutions from 23 countries, garnering 139% oversubscription, the bank said in a statement.

Following scale-back adjustments, the loan was scaled down to $1 billion, with funds allocated to sustainability-linked performance goals, including financing farmers and green transformation technologies.

The transactions, which underscore the bank’s strong reputation in international markets, secured $4.5 billion in fresh funding for the Turkish economy over the past two years. The deal, coordinated by Bank of America, Emirates NBD Capital Limited, and Mashreqbank PSC, saw Emirates NBD Capital, First Abu Dhabi Bank PJSC, Mashreqbank PSC, and SMBC Group serve as ESG (Environmental, Social, and Governance) coordinators, with Mizuho Bank serving as facility agent and Bank of America as documentation agent.

The loan’s pricing was set at the secured overnight financing rate (SOFR) + 1.75% and the Euro interbank offered rate (Euribor) + 1.5% for the one-year term, and SOFR + 2.25% and Euribor + 2.00% for the two-year term.

SOFR is a benchmark interest rate for U.S. dollar loans based on treasury-backed transactions, while Euribor is the average interest rate at which eurozone banks lend to each other in euros.

‘A milestone for sustainable finance’

Hakan Ates, CEO of DenizBank, highlighted the significance of the transaction, describing it as “more than a financing achievement but also a pivotal step toward Türkiye’s transition to a low-carbon economy.”

“This syndicated loan is a testament to our commitment to sustainability and innovation,” Ates said. Denizbank takes great responsibility for the continuity of agricultural production with 14 new lenders among the 54 institutions, Ates stated.

Ates pointed to the bank’s Producer Card initiative, used by nearly 600,000 farmers, vowing to grow its transaction volume by over 60%, to meet key sustainability performance criteria.

Ates emphasized the bank’s commitment to financing technologies that promote efficient resource use and minimize environmental impact.

“Over the past two years, DenizBank has provided $4.5 billion in fresh funding to the economy and increased its sustainability-linked loan portfolio to $3 billion. We will continue to leverage our financial power to support producers and sustainability-focused technologies,” he added.