ICBC contributes to $1.49 billion syndicated loan to Turkey Wealth Fund (TVF) in 2021

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 a $1,491,125,000 (EUR 1.25 billion) 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.

Additional details

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 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 ($106,508,928.57).

Number of official sources

5

Number of total sources

7