ICBC contributes to EUR 738.3 million syndicated loan facility to Akbank for trade finance and general corporate purposes (Linked to Project ID #67056, 92267, 92264)

On March 22, 2017, Akbank T.A.Ş. signed a $1.2 billion dual currency syndicated term loan agreement with 39 banks (including ICBC and CDB). The loan was provided in two USD tranches (facilities) and one EUR tranche (facility) and the borrower was expected to used the loan proceeds for trade finance and general corporate purposes. Project IDs #67056 and #92264 capture the dollar-denominated facilities (worth $404,512,884). Project IDs #67078 and #92267 capture the euro-denominated facility (worth EUR 738.3 million). One of the dollar-denominated facility carried a 367 day (1 year) maturity and an interest rate of LIBOR plus a 1.45% margin. The other dollar-denominated facility carried a 2 year plus 1 business day maturity and an interest rate of LIBOR plus a 2.2% margin. The euro-denominated facility carried a 367 day (1 year) maturity and an interest rate of EURIBOR plus a 1.35% margin. The 39 participants in the loan syndicate included 19 Bookrunning Mandated Lead Arrangers, 3 Lead Arrangers and 16 Arrangers. Bookrunners & Mandated Lead Arrangers: Abu Dhabi Commercial Bank, The Arab Investment Company, Bank of America Merrill Lynch, The Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, China Development Bank Corporation (CDB), Citibank, Commerzbank, Deutsche Bank, Emirates NBD Capital Limited, HSBC, Industrial and Commercial Bank of China (ICBC), ING, J.P.Morgan, Mizuho Bank, Natixis, Societe Generale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation. Lead Arrangers: The Bank of New York Mellon, Banca UBAE, and Wells Fargo Bank. Arrangers: Axis Bank, Banca popolare dell’Emilia Romagna (Europe) International, Banco de Sabadell, CaixaBank, CoBank, Credit Suisse, DZ BANK AG, Goldman Sachs, Habib Bank Limited, Intesa Sanpaolo, KfW IPEX-Bank, Mashreq Bank, Raiffeisen Bank International AG, UBI Banca, Union De Banques Arabes Et Francaises, and Zürcher Kantonalbank. Bank of America Merrill Lynch, Emirates NBD Capital Limited, and ICBC Turkey Yatırım Menkul Değerler A.Ş acted as Joint Coordinators & Bookrunners on the transaction. Bank of America Merrill Lynch also acted as Documentation Agent, Emirates NBD Capital Limited acted as Publicity Agent and Mizuho Bank acted as Facility Agent.

Additional details

1. Akbank is one of the leading banks in Turkey with over $84 billion consolidated assets as of 2016YE. Incorporated in 1948, the bank is 48.9% owned by H.Ö. Sabancı Holding, affiliated Institutions and Individuals, and 51.1% free float as at March 2017. 2. The precise monetary value of the joint contributions of the two ICBC banks and CDB to the $404.5 million syndicated loan facilities is unknown. For the time being, AidData assumes equal contributions ($10,371,795) across the 39 known members of the loan syndicate. Nor is the precise monetary value of the joint contribution of ICBC and CDB to the EUR 738.3 million syndicated loan facility known. For the time being, AidData assumes equal contributions (EUR 18,930,769) across the 39 known members of the loan syndicate. Transaction amount for ICBC's loan denominated in Euro is coded as EUR 37,861,538 because there are two branches of ICBC contributing to the syndicate. 3. The respective sizes of the two dollar-denominated facilities are unknown. Therefore, AidData estimates a single set of borrowing terms for the dollar-denominated facilities. To estimate the maturity length, we take the average length of the two facilities (1.5 years). To estimate the all-interest rate of 3.565%, we take the average of the estimated all-in interest rate of the 367 day facility [average 6-month LIBOR in March 2017 of 1.79% plus 1.35% = 3.14%] and the estimated all-in interest rate of the 2 year plus 1 business day facility [average 6-month LIBOR in March 2017 of 1.79% plus 2.2% = 3.99%]. 4. AidData estimates the all-in interest rate of the euro-denominated facility by adding 1.35% to average 6-month EURIBOR in March 2017 (-0.272%).

Number of official sources

5

Number of total sources

8