T.C. Ziraat Bankas A.. signs a US415000000 & 597000000 367Day Dual Currency Term Loan Facilities on 9 April 2020.

T.C. Ziraat Bankası A.Ş. signs a US$415,000,000 & €597,000,000 367-Day Dual Currency Term Loan Facilities on 9 April 2020.

1 Min | 14 April 2020
Ziraat, one of Turkey's leading banks, is pleased to announce the successful conclusion of its US$415,000,000 & €597,000,000 Dual Currency Term Loan Facilities signed on 9 April 2020.

Ziraat, one of Turkey’s leading banks, is pleased to announce the successful conclusion of its US$415,000,000 & €597,000,000 Dual Currency Term Loan Facilities signed on 9 April 2020.

The transaction comprises of two 367-day facilities, denominated in US dollars and Euros, carrying an interest margin of 1.85 % p.a. and 1.60 % p.a. respectively.

Abu Dhabi Commercial Bank PJSC and Emirates NBD Capital Limited acted as Joint Coordinators on the transaction. The facilities attracted commitments from 38 banks across the globe, including Ziraat’s core relationship banks. The deal was highly successful against the wider backdrop of significant market volatility and the challenging macroeconomic environment and is a testament to Ziraat’s intrinsic financial strength, continued strong performance as well as its solid banking relationships.

Proceeds of the Facilities will be used by the Borrower for general trade finance purposes and partly to refinance a portion of its Term Loan Facility signed on 29th March 2019.

Emirates NBD Capital Limited also acted as Documentation Agent and Mizuho Bank acted as Facility Agent for the facility.

Participating banks included 7 Bookrunning Mandated Lead Arrangers, 9 Lead Arrangers and 22 Arrangers.


Bookrunners and Mandated Lead Arrangers:

Abu Dhabi Commercial Bank PJSC, China Development Bank Hong Kong Branch, Emirates NBD Capital Limited, Societe Generale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, The Saudi National Commercial Bank

Lead Arrangers:

Bank of China Limited, Grand Cayman Branch, Citibank, N.A., Jersey Branch, Commerzbank Aktiengesellschaft, Filiale Luxemburg, Deutsche Bank AS, Turkey, ING Wholesale Banking,ING, J.P. Morgan Securities plc, Mizuho Bank, Ltd., UniCredit


ABC International Bank plc, Anadolubank Nederland N.V., Attijariwafa bank Europe, Banka Kombëtare Tregtare Sh.a., Barclays Bank PLC, BNP Paribas, BPER Bank Luxembourg S.A., CaixaBank, S.A., DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, Erste Group Bank AG, Goldman Sachs International, Habib Bank AG Zurich, UAE, Habib Bank Limited, HSBC Bank Plc, ICBC Standard Bank Plc, Intesa Sanpaolo S.p.A., London Branch, KBC Bank NV, MUFG Bank, Ltd., ODDO BHF Aktiengesellschaft, Raiffeisen Bank International AG, The Housing Bank for Trade and Finance, Zürcher Kantonalbank

The Borrower

About Ziraat

  • Ziraat Bank, incorporated in 1863, is one of the leading and well-established banks in Turkey, being 100% state owned through Türkiye Wealth Fund. It is ranked first in the sector with regard to the asset size, loan - deposit portfolio, shareholders equity and profitability.
  • With its largest national and international network including more than 1,700 branches in Turkey and 109 service points in 18 countries, Ziraat provides high quality services to more than 36 million customers with 24,000 employees, 7,000 ATMs, mobile and digital channels. The Bank also has a high rural presence in Turkey, serving as the only Bank in 400 provinces and the sole bank extending government subsidized agro-loans with a 61% market share. 
  • Ziraat Bank’s customer and market oriented business model together with its cost effective financial management strategy has led a sustainable growth and a well-diversified funding base. Thanks to the long lasting relationship with its correspondent network, Ziraat Bank has been granted substantial amount of credit facility through bilateral loans, post financing and repo transactions in recent years and the outstanding balance has been 5 billion USD by the end of 2019.
  • Having raised its market share from 2.8% in 2012 up to 14.2 % in 2019, the Bank will continue to be more active in trade finance with the significant support of well-established relationships with 1,750 financial institutions from 140 countries. With the solid and sustainable collaboration with its correspondent network, Ziraat offers foreign trade and international payment services with an extensive product range at numerous points in the world.
  • 2019 was a rebalancing year for the Turkish economy and Ziraat Bank continued its growth strategy in a balanced manner among various sectors and segments. As of 31 December 2019, Ziraat’ s total assets reached TL 650 bn and total loan book for TL 435 bn has been increased by 17,1% (13.6% currency adjusted) when compared to 2018 figures.
  • Due to moderate GDP growth in 2019, NPL ratio increased from 2.0% to 2.8% as of 31 December 2019. Nevertheless, the NPL levels continued to be remarkably below the Turkish Banking sector and high asset quality is preserved with a cautious stance. Ziraat completed the year at the 17% level of CAR which is significantly above regulatory requirements with the contribution of market stability and AT1 issuance for EUR 1,4 bn.
  • The Bank maintained its sector leadership in terms of profitability with an interest income of TL 66 bn, gross operational income of TL 24 bn and net profit of TL 6.2 bn. While deposits remain to be the main funding source with TL 447 bn total size and 35.1% YoY growth as of 31 December 2019, the Bank has sustained its funding diversification strategy and had access to external liquidity thanks to strong integration with international financial community and more accommodative global liquidity conditions.
  • Having the responsibility of being the leader in Turkish banking industry, Ziraat aims to achieve financial deepening and adds value to the economy.
  • Ziraat Bank’s outstanding performance has also been awarded by a number of esteemed institutions:

Brand Finance - 2019
✓ Turkey’s Most Valuable Bank Brand

Brand Finance – 2018
✓Turkish Bank Increasing its Brand Value for the Second Time in a row

Lovemarks - 2019
✓ Most Loved Bank (for the successive 4th year)

LACP 2016/17 Vision Awards-2018
✓Sustainability Report Category / Gold Award

Stevie Awards Best New Product or Service of the Year-2018
✓Business Information Solution Category / Gold award

Stevie Awards Best New Product or Service of the Year-2019
✓Business Information Solution Category for the Bank’s Operation Center / Gold award

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