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Overview

Bank of China contributes to a syndicated loan tranche of EUR 303 million to Akbank for debt refinancing (Linked to Record ID#67032, #91597, and #91598)

Commitments (Constant USD, 2023)$10,360,047
Commitment Year•2019Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeyOverseas Jurisdiction•Cayman IslandsSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2019
Last repayment (originally scheduled)
Feb 29, 2020

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Intergovernmental Organizations

  • Bank of Bahrain and Kuwait B.S.C (BBK)

Joint Venture/Special Purpose Vehicles

  • Gulf International Bank B.S.C. (GIB)

Private Sector

  • Askari Bank Limited
  • Bank of America Merrill Lynch International Limited
  • Bankinter, S.A.
  • BNP Paribas S.A.
  • BPER Banca S.p.A. (formerly Banca Popolare dell'Emilia Romagna S.C.)
  • CaixaBank, S.A. (Formerly Criteria CaixaCorp)
  • Citigroup Inc.
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Credit Suisse AG
  • Deutsche Bank AG
  • DZ Bank AG
  • Goldman Sachs Bank USA
  • Habib Bank Limited (HBL)
  • ING Bank N.V.
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mashreqbank PSC
  • mBank S.A. (formerly BRE Bank)
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • ODDO BHF
  • Société Générale S.A. (SocGen or Societe Generale)
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • Abu Dhabi Commercial Bank PJSC (ADCB)
  • Arab Banking Corporation (Bank ABC)
  • Emirates NBD Bank P.J.S.C.
  • National Bank of Ras Al-Khaimah P.J.S.C. (RAKBANK)
  • Saudi National Bank (SNB) (SNB AlAhli) (Formerly The National Commercial Bank (NCB))
  • Zurich Cantonal Bank (Zürcher Kantonalbank (ZKB))

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • Akbank T.A.Ş.

Loan description

BOC and CDB contribution to $700 million syndicated loan USD and EUR tranches to Akbank for debt refinancing

Grant element•3.5631%Interest rate (t₀)•2.17%Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

In March 2019, Bank of China (Grand Cayman Branch), China Development Bank (Inner Mongolia Branch), and 32 other banks signed a $700 million syndicated (loan) facility agreement with Akbank T.A.Ş to help its refinance its existing debts. The loan was divided into two tranches: a $356 million tranche with an interest rate of LIBOR + 250 basis points (captured via Record ID#67032) and a tranche of EUR 303 million with an interest rate of EURIBOR + 240 basis points (captured via Record ID#67033). Both tranches carry maturity lengths of 367 days.

Staff comments

1. On March 1, 2019, the 6-month Euribor rate was -0.23%. Accordingly, AidData has calculated the interest rate of this syndicated loan as (-0.23 + 2.4) 2.17 percent. 2. The size of the joint BOC and CDB contribution to the EUR 303 million syndicated loan tranche is unknown. For the time being, AidData assumes equal contributions (EUR 8,911,764) across the 34 participants in the loan syndicate.