Story chart: Rollover Ratio of Syndicated Loans and Cost of Syndicated loans.
The cost of the USD-tranche stood at the guaranteed overnight financing rate (SOFR) plus 425bp. The cost of the EUR-tranche was the euro interbank offered rate (Euribor) plus 400bp.
The exchange rate-adjusted renewal rate was very low, standing at 60%, while spreads marked record high levels.
Benchmarks are achingly high at the moment as SOFR surpassed the 3%-level, compared to the 0.05% seen in
Recently, all the benchmarks have been on the rise in parallel with the global monetary tightening trend.
In
In
Turkish banks conduct 367-day—a ‘trick’ maturity for registering loans as long-term by using two extra days—syndicated loan renewal seasons twice a year, with one season in spring (April-May) and the other in the autumn (October-November).
Across recent years,
In April this year, government-run Ziraat Bank launched the spring season. In July,
The spring season lasted from April to July. Eleven banks renewed
The costs of the USD-tranches stood at the guaranteed overnight financing rate (SOFR) plus 275bp. The costs of the EUR-tranche were Euribor+210bp. In spring 2021, the costs stood at Libor + 2.50% and Euribor + 2.25%.
In the just-launched autumn season, nine Turkish banks will roll over a combined sum of
In August this year, rumours in
As things stand,
Given the situation as regards the widely doubted reliability of Turkey’s official macro data releases, syndicated loan renewals are a good indicator in following developments in the sustainability of Turkey’s external debt burden.
Table: Full list of Turkish banks’ syndicated loan renewals.
Total | Renewal | Maturity | Tranche | Cost | Tranche | Cost | ||
(mn) | Rate | (days) | 1 | 1 | 2 | 2 | ||
Oct-22 | 60% | 367-day | SOFR+4.25% | €178 | Euribor+4.00% | |||
Jul-22 | TSKB (TSKB) | 63% | 367-day | €90 | ||||
Jun-22 | ING | €300 | 100% | 367-day | SOFR+2.75% | Euribor+2.10% | ||
Jun-22 | Isbank (ISCTR) | 88% | 367-day | SOFR+2.75% | €483 | Euribor+2.10% | ||
Jun-22 | 120% | 367-day | €204 | 364-day |
Chinese | |||
May-22 | Garanti BBVA (GARAN) | 100% | 367-day | SOFR+2.75% | €291 | Euribor+2.10% | ||
May-22 | 91% | 367-day | SOFR+2.75% | €432 | Euribor+2.10% | |||
May-22 | Turk Eximbank | 104% | 1-year | €504 | ||||
May-22 | 118% | 367-day | SOFR+2.75% | €212 | Euribor+2.10% | |||
May-22 | Vakifbank (VAKBN) | 101% | 367-day | SOFR+2.75% | €739 | Euribor+2.10% | ||
Apr-22 | 108% | 367-day | SOFR+2.75% | €329 | Euribor+2.10% | |||
Apr-22 | 100% | 367-day | SOFR+2.75% | €814 | Euribor+2.10% | |||
Nov-21 | Vakifbank (VAKBN) | 102% | 367-day | Libor+2.15% | €314 | Euribor+1.75% | ||
Nov-21 | 100% | 367-day | Libor+2.15% | €135 | Euribor+1.75% | |||
Nov-21 | Garanti (GARAN) | 101% | 367-day | Libor+2.15% | €247 | Euribor+1.75% | ||
Nov-21 | Isbank (ISCTR) | 107% | 367-day | Libor+2.15% | €434 | Euribor+1.75% | ||
Nov-21 | Eximbank | 115% | 1-year | Libor+2.30% | €419 | Euribor+1.90% | ||
Oct-21 | 110% | 367-day | Libor+2.15% | €363 | Euribor+1.75% | |||
Oct-21 | 96% | 367-day | Libor+2.15% | €397 | Euribor+1.75% | |||
Oct-21 | TEB | 114% | 367-day | Libor+2.15% | €231 | Euribor+1.75% | ||
Oct-21 | 88% | 367-day | Libor+2.15% | €207 | Euribor+1.75% |
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