Narrative
Full Description
Project narrative
On May 17, 2019, Garanti BBVA (also known as Garanti Bank and Turkiye Garanti Bankası A.Ş.) signed a $784 million syndicated (dual tranche dual currency) loan facility agreement with 35 banks — including Bank of China — for general corporate and trade financing purposes. The borrower was also authorized to use the loan proceeds to refinance its previous syndicated loan facility. The May 2019 syndicated loan was divided into two tranches: a $326 million tranche with a 1-year (367 day) maturity and an interest rate of LIBOR plus a 2.5% margin (captured via Record ID#90215) and an EUR 408.75 million tranche with a 1-year (367 day) maturity and an interest rate of EURIBOR plus a 2.4% margin (captured via Record ID#90560). Participants in the loan syndicate included Bank of China, Bank of America Corporation, Emirates NBD Bank P.J.S.C., Mizuho Bank, Standard Chartered Bank PLC, BNP Paribas S.A., Citibank, Commerzbank Aktiengesellschaft, Deutsche Bank, Intesa Sanpaolo SpA, JPMorgan Chase & Co., MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Saudi National Commercial Bank (NCB), Societe Generale, Sumitomo Mitsui Banking Corporation Group (SMBC Group), Bank of Montreal Europe plc, Bank AL Habib Limited, Bank of New York Mellon Corporation (BNY Mellon), Barclays Bank Plc, CaixaBank, DZ Bank AG, Erste Group, Goldman Sachs Bank USA, Jordan Commercial Bank, NatWest Markets Plc, Nomura Holdings, Inc., Raiffeisen Bank International AG, National Bank of Ras Al-Khaimah P.J.S.C. (RAKBANK), PASHA Bank, and Gulf International Bank.
Staff comments
1. The all interest rate (2.168%) for the EUR-denominated tranche has been calculated by adding 2.4% to average 6-month Euribor (-0.237%) in May 2019. 2. The all-in interest rate (5.068%) for the USD-denominated tranche has been calculated by adding 2.5% to average 6-month Libor in May 2019 (2.568%). 3. AidData has calculated the maturity length as 1.005 years (367 days). 4. The size of Bank of China’s contribution to the EUR 408.75 million syndicated loan tranche is unknown. 5. For the time being, AidData assumes equal contributions (EUR 11,678,571) across the 35 participants in the loan syndicate. 6. The size of Bank of China’s contribution to the $326 million syndicated loan tranche is unknown. For the time being, AidData assumes equal contributions ($9,314,285) across the 35 participants in the loan syndicate. 7. Garanti BBVA is a Turkish financial services company based in Turkey. 86% of Garanti's stakes are owned by the Spanish bank Banco Bilbao Vizcaya Argentaria.