Narrative
Full Description
Project narrative
In April 2022, Ziraat Bank (Ziraat Bankasi) — a Turkish state-owned bank —signed 367-day, $352.5 million and EUR 814 million sustainability-linked term loan facility agreements with a syndicate of 45 banks in 21 countries. The $352.5 million loan carried an interest rate of SOFR plus a 2.75% margin and the EUR 814 million loan carried an interest rate of EURIBOR plus a 2.1% margin. The loan proceeds were to be utilized by the borrower for on-lending purposes. The ESG KPIs included favorable loan terms for women and young farmers, facilitating gender and opportunity equality and revisions of ATMs and branch offices to better accommodate disabled customers. Participants in the syndicate included ICBC, The Commercial Bank (P.S.Q.C.), Abu Dhabi Commercial Bank, Emirates NBD Capital Limited, Citigroup, Deutsche Bank, HSBC, ING, JP Morgan, Mashreqbank, Mizuho, SMBC, Société Générale, and Standard Chartered Bank. Emirates NBD Capital Limited, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation acted as sustainability coordinators.
Staff comments
1. The size of ICBC’s contribution to the EUR 814 million syndicated loan is unknown. For the time being, AidData assumes equal contributions across the 45 banks that participated in the syndicate (EUR 18,088,888). This issue warrants further investigation. 2. AidData has estimated the all-in interest rate by adding 2.1% to average 6-month EURIBOR in April 2022 (-0.362%). 3. Legal Advisers to the Borrower: Özok Hukuk Bürosu. 4. Legal Advisers to the MLAs: Hogan Lovells.