5/3/2018
Garanti Bank Secures Syndicated Loans Amounting to € 1.2 Billion
Syndicated loans consist of three credit tranches of $ 457 million, € 670.5 million and $ 145 million
Garanti Bank stated that it has renewed the syndicated loans amounting to € 1.2 billion at a rate of 100 percent, which were provided from international markets in May 2017 within the framework of the foreign borrowing program. According to a disclosure made by the bank, 38 banks from 17 countries participated in the syndicated loan agreement consisting of three credit tranches of $ 457 million and € 670.5 million with a maturity term of 367 days and $ 145 million with a maturity term of 2 years and 1 day. The total cost of the credit is determined as Libor plus 1.30 percent and Euribor plus 1.20 percent for tranches with a maturity term of 367 days and as Libor plus 1.20 percent for the credit tranche with a maturity term of 2 years and 1 day. The loan will be used to finance foreign trade and to finance overhead corporate expenses. Garanti Bank’s President and CEO Fuat Erbil giving information on the renewed syndication loan, spoke as follows: “Garanti has once more proved its ability in creating foreign resources upon such a transaction by means of its strong correspondent banking network and experienced staff. The fact that we have been able to renew our syndicated loans and having extended the maturity period to 2 years has underlined the power of Garanti to secure funds in foreign credit markets despite fluctuations in the market, the prevailing climate and a cut in the credit rating by Moody’s. The transaction has proven the trust in the Turkish banking sector in international markets and has reconfirmed the trust in the potential of the Turkish economy.”
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