Story chart: Turkish corporates’ external debt rollover rates.
A total of 36 banks from 18 different countries, including 13 newcomers, participated in the facility.
The renewal rate jumped to 146%, while spreads fell sharply by 75bp. This could be seen as the first clear sign of the benefits of Turkey’s so-called economic normalisation policy applied since June.
The cost of the USD-tranche stood at the guaranteed overnight financing rate (SOFR) plus 350bp while the cost of the EUR-tranche was the euro interbank offered rate (Euribor) plus 325bp.
In
Despite the significant recovery in spreads, the costs still stand close to the double digits as the benchmarks remain painfully high.
SOFR persists above the 5%-level, compared with the 0.05% seen in
All the benchmarks have been on the rise in parallel with the global monetary tightening trend, which was expected to go into reverse this year. However, it seems rate cuts have been delayed to 2024.
In
In line with local peers,
Chart: Akbank’s wholesale funding profile as of October.
In the autumn season this year, a total of nine Turkish banks will roll a combined sum of
In the autumn refinancing season of 2022, nine Turkish banks rolled a combined sum of
In the spring season of 2023, 11 banks renewed a combined sum of
Chart: Rollover Ratio of Syndicated Loans and Cost of Syndicated loans calculated by the central bank for the top 10 big-cap banks.
Turkish banks conduct 367-day (a ‘trick’ maturity for registering loans as long-term that uses two extra days) syndicated loan renewal seasons twice a year, with one season in spring (April-July) and the other in autumn (October-November).
They release identical costs in syndicated loan renewals, while some of the lenders, particularly smaller ones, pay higher fees.
Across recent years,
The share of syndicated loans in Turkey’s and Turkish banks’ external funding composition has declined in recent years.
Nevertheless, the banks’ syndicated loan renewals are a good indicator in following developments in the sustainability of Turkey’s external debt burden.
Total | Renewal | Maturity | Tranche | Cost | Tranche | Cost | ||
(mn) | Rate | (days) | 1 | 1 | 2 | 2 | ||
Oct-23 | 146% | 367-day | SOFR+3.50% | €266 | Euribor+3.25% | |||
Jul-23 | TSKB (TSKB) | 113% | 367-day | €94 | ||||
Jun-23 | ING | €332 | 112% | 367-day | SOFR+4.25% | Euribor+4.00% | ||
Jun-23 | 117% | 364-367-day | €183 |
Chinese | ||||
Jun-23 | Isbank (ISCTR) | 83% | 367-day | SOFR+4.25% | €388 | Euribor+4.00% | ||
Jun-23 | Garanti BBVA (GARAN) | 73% | 367-day | SOFR+4.25% | €219 | Euribor+4.00% | ||
Jun-23 | 78% | 367-day | SOFR+4.25% | €353 | Euribor+4.00% | |||
May-23 | 102% | 367-day | SOFR+4.25% | €144 | Euribor+4.00% | |||
May-23 | Vakifbank (VAKBN) | 81% | 367-day | SOFR+4.25% | €576 | Euribor+4.00% | ||
May-23 | Turk Eximbank | 89% | 364-day | €522 |
Chinese | |||
Apr-23 | 71% | 367-day | SOFR+4.25% | €233 | Euribor+4.00% | |||
Apr-23 | 103% | 367-day | €779 | |||||
Nov-22 | Garanti BBVA (GARAN) | 65% | 367-day | SOFR+4.25% | €239 | Euribor+4.00% | ||
Nov-22 | 104% | 367-day | SOFR+4.25% | €253 | Euribor+4.00% | |||
Nov-22 | Vakifbank (VAKBN) | 91% | 367-day | SOFR+4.25% | €328 | Euribor+4.00% | ||
Nov-22 | Isbank (ISCTR) | 69% | 367-day | SOFR+4.25% | €331 | Euribor+4.00% | ||
Nov-22 | Turk Eximbank | 101% | 1-year | €404 | €136 |
Chinese | ||
Nov-22 | 78% | 367-day | SOFR+4.25% | €330 | Euribor+4.00% | |||
Nov-22 | 61% | 367-day | SOFR+4.25% | €249 | Euribor+4.00% | |||
Oct-22 | TEB | 77% | 367-day | SOFR+4.25% | €200 | Euribor+4.00% | ||
Oct-22 | 60% | 367-day | SOFR+4.25% | €178 | Euribor+4.00% |
Table: Full list of Turkish banks’ syndicated loan renewals.
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