Turkish lenders provide $7B financing from international financial institutions during normalization period
Having provided nearly $7 billion in financing from international financial institutions in the second half of this year, Turkish lenders reaffirmed trust in their country and sector.
Normalization steps around the world and positive developments concerning the COVID-19 vaccine has boosted the global risk appetite.
While Turkey has received praise for its measures and proactive steps to curb the spread of the coronavirus, the country also achieved significant success in accessing international funds.
Lenders, which provided nearly $6 billion in syndicated loans in April-May when the pandemic was felt deeply, secured $5.9 billion syndicated loans in the second half of the year.
The cost of syndication loan rose some 25 basis points, depending on developments in the country’s risk premium and decisions by credit rating agencies.
Other sources were also tapped besides syndication loans in this period.
Ulker, a leading biscuit and sweet maker, issued a bond worth of $650 million on Oct. 22, becoming the first food company in Turkey that issued a bond during the outbreak.
Also, Turk Eximbank signed a two-year loan agreement with ICBC Turkey, a Chinese private lender, securing €200 million ($237.9 million) to support export financing.