Dual-tranche financing secured by TEB receives approval for execution
Turkey's Türk Ekonomi Bankası (TEB), one of the country's oldest and well-established financial institutions, has secured a significant loan facility to support its pre-export and export trade finance activities. The bank has announced a €352 million euro and US$205 million USD loan facility, with the transaction being led by a consortium of seven international banks.
The loan arrangement, which replaces TEB's previous multi-tranche, dual-currency loan facility that matured on August 31, 2016, has a tenor of 367 days. The interest rates for the two tranches are 0.35% for the euro tranche and 0.45% for the dollar tranche.
The consortium of banks, acting as mandated lead arrangers and bookrunners, includes BNP Paribas, Standard Chartered, Wells Fargo, HSBC, Commerzbank, Mizuho, and UniCredit. Mizuho, in particular, served as the facility agent for the transaction.
Standard Chartered acted as the coordinator of the transaction, a role that has already been mentioned. The participation of these international banks underscores the confidence in TEB's financial stability and its strategic role in Turkey's trade finance sector.
The loan facility is expected to bolster TEB's capacity to support Turkish exporters and importers, contributing to the country's economic growth and trade activities. As of 2024, TEB is the 11th largest bank in Turkey by total assets with a 2.04% market share, demonstrating its significant growth in assets and profitability.
It is important to note that the search results did not yield specific information about the terms, purpose beyond general trade finance, or disbursement details of this particular loan facility. For more detailed information, it would be best to consult official announcements from TEB or press releases from the financing parties.
A total of 24 banks participated in the financing, reflecting the broad support for TEB's strategic initiatives. This new loan facility is a testament to TEB's strong position in the Turkish banking sector and its commitment to supporting Turkey's trade activities.
- The new loan facility, led by a consortium of seven international banks, will bolster TEB's transaction banking capabilities, particularly in sustainable trade and trade finance.
- By boosting TEB's capacity to support Turkish exporters and importers, this loan facility aims to foster economic growth and promote sustainable trade activities in Turkey.
