Turkey's Garanti BBVA renews syndicated loan deal

By Aysu Bicer

ANKARA (AA) – Turkish bank Garanti BBVA on Wednesday announced that it has once again rolled over the syndicated loan it received from international markets and signed another loan agreement for approximately $638 million.

According to a statement issued by the bank, the syndicated loan deal, consisting of two tranches of $279 million and €294 million (over $359 million) with a maturity of 367 days, includes 34 banks from 18 countries and has a rollover ratio of 140%.

“We see this process as an important step and reflection of our commitments to sustainability and the mission we undertake,” said Garanti BBVA CEO Recep Bastug.

He said the renewal of the syndicated loan demonstrates the bank’s power to create sustainable funding in the foreign financing market in line with its vision.

“With the renewed syndicated loan, we will continue to contribute to the financing of foreign trade and to be the biggest supporter of our companies in the international arena,” he added.

A syndicated loan, or a syndicated bank facility, is financing provided by a group of lenders – known as a syndicate – who work together to enable funds for a borrower.

The borrower can be a company, a big project, or a sovereign government.