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Overview

ICBC contributes to EUR 1.25 billion syndicated loan to Turkey Wealth Fund (TVF) in 2021

Commitments (Constant USD, 2023)$96,863,617
Commitment Year•2021Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•Unallocated/unspecifiedFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 16, 2021
First repayment (originally scheduled)
Mar 16, 2023
Last repayment (originally scheduled)
Mar 16, 2023

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

Private Sector

  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Bank of America Corporation
  • Barclays Bank PLC
  • Citibank, N.A.
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • JPMorgan Chase & Co.
  • Société Générale S.A. (SocGen or Societe Generale)
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • Arab Banking Corporation (Bank ABC)
  • Emirates NBD Bank P.J.S.C.
  • ING
  • Qatar National Bank Q.P.S.C. (QNB)

Receiving agencies

State-owned companies

  • Turkey Wealth Fund (TWF)

Guarantors

Government Agencies

  • Government of Turkey

Loan description

ICBC contribution to EUR 1.25 billion 2021 syndicated loan to Turkey Wealth Fund (TVF)

Grace period•2 yearsGrant element•14.2796%Interest rate (t₀)•1.73%Interest type•Variable Interest RateMaturity•2 years

Narrative

Full Description

Project narrative

On March 16, 2021, a syndicate of 14 banks — including Citibank, Industrial Commercial Bank of China (ICBC), HSBC, Arab Banking Corporation, Emirates NBD, ING, Intesa Sanpaolo, J.P. Morgan, Qatar National Bank, Sumitomo Mitsui Banking Corporation, Banco Bilbao Vizcaya Argentaria, Bank of America, Barclays and Société Générale — signed an EUR 1.25 billion ($1,491,125,000) loan agreement with Turkey Wealth Fund (TWF) (Turkish: Türkiye Varlık Fonu, TVF). ICBC acted as the Lead Bookrunner and Joint Coordinator while Citi acted as the Bookrunner, Joint Coordinator and Documentation Agent. HSBC plc acted as the Facility Agent. Arab Banking Corporation, Emirates NBD, HSBC, ING, Intesa Sanpaolo, J.P. Morgan, Qatar National Bank and Sumitomo Mitsui Banking Corporation joined the syndication as Mandated Lead Arrangers. Banco Bilbao Vizcaya Argentaria, Bank of America, Barclays and Société Générale acted as the Lead Arrangers. The loan carried a two-year maturity, a two-year grace period, and an interest rate of EURIBOR plus a 2.25% margin. The Government of Turkey issued a sovereign guarantee in support of the loan (covering 95% of its face value, or $1.25 billion). The proceeds of the loan were to be used by the borrower to supply liquidity to companies supported by the TVF.

Staff comments

1. Turkey Wealth Fund (TWF) (Turkish: Türkiye Varlık Fonu, TVF) is a $33 billion sovereign wealth fund founded in August 2016 and owned by the Government of Turkey. 2. The all-in interest rate is calculated by adding 2.25% to the average 6-month EURIBOR rate (-0.516%) in March 2021. 3. The precise monetary value of ICBC’s contribution to the EUR 1.25 billion syndicated loan is unknown. For the time being, AidData assumes equal contributions (EUR 89,285,714.28) across the 14 known members of the syndicate. This issue warrants further investigation.