Turkey’s major banks are raising foreign currency funds to help with rebuilding the country after it was hit by earthquakes earlier in the year.
(Bloomberg) — Turkey’s major banks are raising foreign currency funds to help with rebuilding the country after it was hit by earthquakes earlier in the year.
Akbank T.A.S. is replacing a roughly $700 million annual term loan that was tied to sustainability targets with a social loan, the proceeds of which are to be used for disaster relief, according to people familiar with the matter who aren’t authorized to speak publicly and asked not to be identified.
TC Ziraat Bankasi is also back for its annual refinancing with terms linked to sustainability goals but focused on supporting earthquake recovery efforts, the people said. The lender is refinancing part of a $1.24 billion loan from last April.
Representatives for Akbank and Ziraat didn’t immediately respond to requests for comment.
Turkey’s central bank says it could revise tools that support liquidity conditions in response to the devastating earthquakes. The 7.7 and 7.6-magnitude tremors on Feb. 6 — and their aftershocks — killed more than 50,000 people in Turkey and Syria, leaving hundreds of thousands of people homeless.
- Both the lenders are offering the same interest rates at 375 basis points over Secured Overnight Financing Rate (SOFR), and 350 basis points over Euribor, according to the people
- Based on a top-level participation fee of 50 basis points, the all-in costs are 425 basis points for USD and 400 basis points for euros
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