T.C. Ziraat Bankası A.Ş. signs US$278,000,000 & €706,500,000 367-Day Dual Currency Term Loan Facilities on 3 April 2017.

4 Min | 12 April 2017

Ziraat, one of Turkey's leading banks, is pleased to announce the successful conclusion of its US$278,000,000 & €706,500,000 Dual Currency Term Loan Facilities signed on 3 April 2017.

Ziraat, one of Turkey’s leading banks, is pleased to announce the successful conclusion of its US$278,000,000 & €706,500,000 Dual Currency Term Loan Facilities signed on 3 April 2017.

The transaction comprises of two 367-day facilities, denominated in US dollars and Euros, carrying an interest margin of 1.15 % p.a. and 1.05 % p.a. respectively.

The facilities attracted commitments from 41 banks, including Ziraat’s core relationship banks, and is a testament to Ziraat’s intrinsic financial strength, continued strong performance as well as its solid banking relationships. Ziraat Bank will be using this funding in its ongoing efforts to effectively support its customers through the increasingly broader and more diversified range of foreign trade finance products and services that it offers.

Bank of America Merrill Lynch and Emirates NBD Capital Limited acted as Joint Coordinators, with Bank of America Merrill Lynch as Documentation Agent and Emirates NBD Capital Limited as Publicity Agent. Mizuho Bank acted as Facility Agent for the facility, which refinances Ziraat’s previous syndicated loan facility signed on 31st March 2016.

Participating banks included 12 Bookrunning Mandated Lead Arrangers, 2 Lead Arrangers, 3 Arrangers and 24 Participants.

Banks

Bookrunners and Mandated Lead Arrangers:
Bank of America Merrill Lynch, Cargill Financial Services International, Inc. Citi, Commerzbank Aktiengesellschaft, Filiale Luxemburg, Emirates NBD Bank PJSC, Erste Group Bank AG, HSBC Bank plc
ING, J.P. Morgan Limited, Mizuho Bank, Ltd., Société Générale Corporate & Investment Banking, Standard Chartered Bank.

Lead Arrangers:
The Bank of New York Mellon, UniCredit Bank AG.

Arrangers:
Doha Bank, DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, Goldman Sachs International.

Participants:
Anadolubank Nederland N.V., Axis Bank Ltd, DIFC Branch, Arab Banking Corporation (BSC), Banca popolare dell’Emilia Romagna (Europe) International S.A. (BPER Group), Banco de Sabadell, S.A., Banco Popular Español S.A., Bank al Habib, Bank Audi S.A.L., Bank of Montreal, Banka Kombëtare Tregtare Sh.a., BNP Paribas, Caixabank, S.A, CoBank, ACB, Deutsche Bank AG, London Branch, Habib Bank Limited, Intesa Sanpaolo S.p.A., London Branch, KBC Bank NV, KfW IPEX-Bank GmbH, Mashreqbank, National Bank of Canada, Raiffeisen Bank International, The Governor and Company of the Bank of Ireland, UBI Banca SPA, Zürcher Kantonalbank.

The Borrower

About Ziraat

Ziraat Bank, established in 1863, is a full‑service commercial and retail banking group that provides a broad range of products and services to more than 30 million customers across Turkey and selected international markets. The Bank is 100% state owned and has a leading position among Turkish banks with more than 1,800 branches (28 international branches), and around 25,000 employees. The Bank has a strong rural presence being the sole bank providing services to customers in more than 400 provinces in Turkey and the sole bank distributing government subsidized agro loans with its 59% market share. Ziraat is currently rated ‘’Ba2’’ by Moody’s and ‘’BB+’’ by Fitch.

Ziraat has the largest foreign network among Turkish banks with its 99 service points in 19 countries. In 2016, the Bank expanded its foreign network with the establishment of an offshore branch in Bahrain. The Turkish business line was also expanded with the establishment of its real estate investment trust, namely Ziraat Gayrimenkul Yatırım Ortaklığı A.Ş.

After 2012, the Bank has changed its way of doing business with the implementation of a more customer and market oriented business model and new financial management. The main pillars of the changing business model are solid and sustainable growth, effective cost management, more customer oriented balance sheet and well diversified funding.base.

As of YE2016, Ziraat Bank has 13% asset market share with TL 357.8 bn asset size. In FY2016 the Bank increased its total loans by 25% to TL 232.6 bn mainly led by the growth in housing, corporate and SME loans. The Bank has sound asset quality with an NPL ratio of 1.8% as of YE2016 which is below the sector average of 3.2%. The Bank has been pursuing a more active strategy in trade finance with a market share increasing from 2.8% in 2012 to 10.7% in 2016. As of YE2016, the Bank maintained a strong CAR at 14.6% which is significantly above the minimum regulatory limits including capital and SIFI buffers.

The Bank has strong P&L results in 2016 with 32.7% NII 26.4% Net Fee& Commission Income and 1.8% OPEX growth. The net profit was realized as TL 6.6 bn with 27.4% YoY change in 2016.

The Bank's strategy is to improve its business through leveraging its existing customer base through cross-selling and expanding more tailored product offering, maintaining and enhancing its leading position in the agricultural sector, achieving further growth with sustainable profitability and efficiency. Other strategies include maintaining and enhancing a strong equity base that is compatible with its asset size, improving operational efficiency through cost control initiatives, diversifying asset base and improving returns. The Bank will also be improving and expanding its international network through strategic acquisitions and overseas investments.

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