QNB Turkey Secures $650 Million Syndicated Loan
Foreks - QNB Turkey has once again achieved significant success with its highly sought-after sustainability-linked syndicated loan. The bank raised $650 million in funding for the Turkish economy through a renewed syndicated loan composed of six tranches with maturities of 1 year, 2 years, and 3 years, becoming the only Turkish bank to secure 3-year funding in the past five years.
QNB Turkey, which obtained a $650 million sustainability-linked syndicated loan, has managed to establish itself as the only bank in the Turkish banking syndication loan market to secure 3-year funding in the last five years. The new syndicated loan attracted more than $1 billion in investor demand, exceeding double the amount of the maturing loan. Following this strong demand, QNB Turkey renewed its syndicated loan for $650 million at a rate of 130%.
The syndication consists of six tranches amounting to $246 million for one year, $300 million for two years, and $103 million for three years. The total costs for the syndication transaction were annual SOFR + 1.75% for the one-year USD tranche, annual SOFR + 2.25% for the two-year USD tranche, and annual SOFR + 2.35% for the three-year USD tranche. Additionally, for the one-year Euro tranche, the rate was annual Euribor + 1.50%, for the two-year Euro tranche it was annual Euribor + 2.00%, and for the three-year Euro tranche it was annual Euribor + 2.10%.
The significant interest in QNB Turkey's syndication also drew attention due to the participation of 64 banks from 28 countries, including 4 new countries and 21 new banks. The coordination of the syndication transaction was shared by Mizuho Bank and Abu Dhabi Commercial Bank, while Standard Chartered Bank and Mizuho Bank took on the role of sustainability coordinators.
QNB Turkey will continue to support Turkey's green and social transformation and foreign trade through the sustainable syndicated loan. The sustainability commitments utilized in the borrowing include loans provided to regions affected by the February 6 Earthquake, which deeply impacted Turkey, and Green Loans issued in alignment with QNB’s Sustainable Financing Framework.
Ömür Tan stated, “We set precedents with our new syndicated loan.” QNB Turkey's General Manager Ömür Tan emphasized that only QNB Turkey has provided 3-year syndicated loans in the Turkish banking sector over the past five years, stating, “The high demand for the syndicated loan is proof of the strong confidence in both Turkey and QNB Turkey.” Highlighting the bank's contribution to the country's sustainable development, Tan commented on the successfully completed syndication loan:
“With the new sustainability-linked syndicated loan with a maturity stretching up to 3 years, we once again demonstrated our pioneering role in the Turkish syndication market and the trust that our investors have in both our country and our bank. As the only Turkish bank to borrow for up to 3 years among the syndicated loans realized in the past five years, QNB Turkey has reinforced its leading position in the sector by renewing the maturity benchmark it set following its 3-year syndicated loan in 2019. We take pride in having 21 new banks participating in our syndication, which we see as a reflection of our bank's success in international financial markets. The credits we provide to the earthquake-affected areas and our support for the green and social transformation of the real sector through Green Loans are at the heart of our syndicated loan. Through our new syndicated loan, we will continue to work towards the development of the Turkish economy and strengthening foreign trade, contributing to economic development.”