Overview

ICBC support syndicated loan to Hayat Varlık to re-finance the company’s maturing debt and enable new NPL acquisitions

Commitments (Constant USD, 2023)$17,498,328

Commitment Year•2017Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2017

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

Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Intergovernmental Organizations

European Bank for Reconstruction and Development (EBRD)

Receiving agencies

Private Sector

Hayat Varlık

Loan description

ICBC contribution to TRY 120 million syndicated loan to Hayat Varlık to re-finance maturing debt and enable new NPL acquisitions

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2017, the EBRD and ICBC issued a syndicated loan worth 120 million Turkish lira (€36 million) to Hayat Varlık, the largest non-performing loans (NPL) and asset management company in Turkey. EBRD and ICBC each contributed 60 million to the loan. The proceeds of the loan were to be used by the borrower to partly re-finance the company’s maturing debt and enable new NPL acquisitions from financial institutions.

Staff comments

At the time that this loan agreement was signed, Hayat Varlik had recently merged with Turkasset, which was previously the largest player in the NPL market. Also, the EBRD is a 12 percent shareholder in Hayat Varlik.