Türkiye’s largest state lender Ziraat secures record $1.75B syndicated loan
A view of the Turkish Ziraat Bank building in Sarajevo, Bosnia and Herzegovina, on Mar. 15, 2024. (Adobe Stock Photo)
Ziraat Bank, Turkiye’s largest state-owned lender, has successfully secured a total of $1.75 billion in syndicated loans, marking the country’s largest-ever sustainability-linked syndicated financing completed in a single transaction.
According to a statement released by the bank on Thursday, the deal represents not only the highest amount raised in a single tranche by any Turkish bank but also the broadest participation in a sustainability-themed syndicated loan to date. The transaction aims to bolster foreign trade and reinforce the bank’s commitment to sustainable finance without interruption.
The funding was secured in two tranches, $850 million and €789 million ($895.55 million), and the loan renews 104% of the bank’s previous syndication. The transaction drew participation from 69 banks across 29 countries, underscoring strong global interest.
‘Reflection of the trust placed in Türkiye’
Commenting on the loan, Ziraat Bank CEO Alpaslan Cakar highlighted that the robust and diversified demand for the syndication, despite ongoing global uncertainties and challenges in international trade, reflects continued confidence in Turkiye and the bank within international financial markets.
“In a time when global trade is being reshaped, we view this deal not merely as a demonstration of banking performance or a successful financial transaction but as a clear reflection of the trust placed in our country” Cakar stated.
He added that this year’s syndication offers a cost advantage despite geographic diversification and evolving financial conditions, noting that loan interest rates declined by 90 basis points compared to the same period last year.
“We saw the inclusion of 11 new banks from eight different countries in this year’s transaction. The proceeds will be directed primarily toward financing foreign trade, supporting sustainable agriculture projects, and boosting investments in the real economy” he said.
Ziraat Bank identified its performance criteria for this transaction as financing sustainable agriculture and contributing to the transition to a low-carbon economy. Cakar emphasized the bank’s continued commitment to responsible banking and its goal to expand both its market share in foreign trade and the diversity of its funding sources.
