Narrative
Full Description
Project narrative
On May 16, 2018, İşbank — the largest commercial bank in Turkey — signed a $1.5 billion syndicated (dual tranche dual currency) loan facility agreement with 42 banks — including Industrial & Commercial Bank of China (ICBC) — from 18 countries for general trade finance purposes including financing of Isbank’s existing export and import contracts. The loan was divided into two tranches: a $447 million tranche with a 1-year (367 day) maturity and an interest rate of LIBOR plus a 1.3% margin (captured via Record ID#92336) and an EUR 867.61 million tranche with a 1-year (367 day) maturity and an interest rate of EURIBOR plus a 1.2% margin (captured via Record ID#92335). Participants in the syndicate included Industrial & Commercial Bank of China (ICBC), Standard Chartered (coordinators) Bank of America Merrill Lynch, BNP Paribas, Citigroup, Commerzbank, Deutsche Bank, Emirates NBD, First Abu Dhabi Bank, ING, JP Morgan, Mizuho, MUFG, Société Générale, Sumitomo Mitsui Financial Group, UniCredit, and Wells Fargo, among others. Industrial and Commercial Bank of China Limited, London Branch and Standard Chartered Bank acted as Joint Coordinators. with First Abu Dhabi Bank PJSC as the Facility Agent for the facility.
Staff comments
1. İşbank, officially Türkiye İş Bankası, is a commercial bank in Turkey. It was the largest private bank in the country by the size of total assets, total loans, total deposits and equity, as well as by the number of branches and employees as of 31 December 2021. It was the first bank founded by the Turkish Republic. 2. The all interest rate (0.93%) for the EUR-denominated tranche has been calculated by adding 1.2% to average 6-month Euribor (-0.270%) in May 2018. 3. The all-in interest rate (3.8%) for the USD-denominated tranche has been calculated by adding 1.3% to average 6-month Libor in May 2018 (2.3%). 4. AidData has calculated the maturity length as 1.005 years (367 days). 5. The size of ICBC’s contribution to the EUR 867.61 million syndicated loan tranche is unknown. For the time being, AidData assumes equal contributions (EUR 20,657,380) across the 42 participants in the loan syndicate. 6. The size of ICBC’s contribution to the $447 million syndicated loan tranche is unknown. For the time being, AidData assumes equal contributions ($10,642,857) across the 42 participants in the loan syndicate.