ICBC contributes EUR 100 million to EUR 1 billion syndicated loan to Turkey Wealth Fund (TVF)

On March 13, 2019, a syndicate of 10 banks — including Citibank, Industrial Commercial Bank of China (ICBC), HSBC, ING, Intesa Sanpaolo, J.P. Morgan, Sumitomo Mitsui Banking Corporation, Bank of America Merrill Lynch, Emirates NBD and Société Générale — signed an EUR 1 billion loan agreement with Turkey Wealth Fund (TWF) (Turkish: Türkiye Varlık Fonu, TVF). Under the Joint Coordination of ICBC and Citi, ICBC was the lead bookrunner, Citi was the bookrunner and documentation representative, while HSBC was the credit representative. HSBC, ING, Intesa Sanpaolo, J.P. Morgan and Sumitomo Mitsui Banking Corporation joined the syndication as mandated lead arrangers with Bank of America Merrill Lynch, Emirates NBD and Société Générale involved at the Lead Arranger level. The loan carried a two-year maturity (with the option to extend for another year), a two-year grace period, and an interest rate of EURIBOR plus a 2.5% margin. The Government of Turkey issued a sovereign guarantee in support of the loan. The proceeds of the loan were to be used by the borrower to supply liquidity to companies supported by the TVF. This loan was reportedly the first international borrowing of the TVF.

Additional details

1. Turkey Wealth Fund (TWF) (Turkish: Türkiye Varlık Fonu, TVF) is a $33 billion sovereign wealth fund founded in August 2016 owned by Government of Turkey. 2. The all-in interest rate is calculated by adding 2.5% to the average 6-month EURIBOR rate (-0.230%) in March 2019. 3. The size of ICBC’s contribution to the lending syndicate is unknown. For the time being, AidData assumes that each member of the lending syndicate contributed an equal amount (EUR 100 million).

Number of official sources

7

Number of total sources

16