TEB raises $245 mln from foreign banks
Güncelleme Tarihi:
Hürriyet Daily News
Oluşturulma Tarihi: Aralık 02, 2008 00:00
ISTANBUL - The Turkish Economy Bank, or TEB, co-owned by BNP Paribas, raised $245 million from one-year loans in dollars and euros to finance export projects despite the global credit crunch.
The lender has borrowed 142 million euros and $60 million, totaling $245 million, from 17 foreign banks.
"The interest on the loan is Libor plus 200 basis points. The interest margin compares with 55 basis points over Libor TEB paid on borrowing last year," Varol Civil, chief executive of TEB, said at a press conference in Istanbul yesterday in reference to the London Interbank Offered Rate. One hundred basis points are equivalent to 1 percent.
With yesterday’s announcement, TEB has refinanced almost 80 percent of 240 million euros of syndicated debt that matured last month. The bank said its 2007 syndicated loan debt was paid back to lenders two weeks ago.
Dry spell for liquidity
"With the current global financial crisis, the five- or six-year-long global liquidity abundance has come to an end. This has been reflected in borrowing costs," said Civil. "Within this context, we believe we closed a successful deal. This is a fruitful credit deal."
The deal showshow confident the international banking sector is about Turkish banks, Ethem Tuncel, Turkey representative of Standard Chartered Bank, said during a press meeting. "This is a great achievement amid a negative global financial atmosphere."
"Syndicated loans are important for us. As they are a long-term source, they allow us to finance foreign trade projects," said Civil. The Turkish banking system although is not so dependent on international sources such as syndicated loans, Civil said, as they "prefer to finance their assets through local deposits."
"Syndicated loans constitute 2.77 percent of the total liability of the Turkish banking sector as at Sept. 30. The rest consists of local deposits," Civil told journalists. "As I mentioned before, syndicated loans are not vital to the Turkish banking system. We renewed 80 percent of our syndicated loans with this deal. A 60 or 70 percent average renewal rate is a very good rate for Turkish banks."
"The interest on the loan is Libor plus 200 basis points. The interest margin compares with 55 basis points over Libor TEB paid on borrowing last year," Varol Civil, chief executive of TEB, said at a press conference in Istanbul yesterday in reference to the London Interbank Offered Rate. One hundred basis points are equivalent to 1 percent.
With yesterday’s announcement, TEB has refinanced almost 80 percent of 240 million euros of syndicated debt that matured last month. The bank said its 2007 syndicated loan debt was paid back to lenders two weeks ago.
Dry spell for liquidity
"With the current global financial crisis, the five- or six-year-long global liquidity abundance has come to an end. This has been reflected in borrowing costs," said Civil. "Within this context, we believe we closed a successful deal. This is a fruitful credit deal."
The deal showshow confident the international banking sector is about Turkish banks, Ethem Tuncel, Turkey representative of Standard Chartered Bank, said during a press meeting. "This is a great achievement amid a negative global financial atmosphere."
"Syndicated loans are important for us. As they are a long-term source, they allow us to finance foreign trade projects," said Civil. The Turkish banking system although is not so dependent on international sources such as syndicated loans, Civil said, as they "prefer to finance their assets through local deposits."
"Syndicated loans constitute 2.77 percent of the total liability of the Turkish banking sector as at Sept. 30. The rest consists of local deposits," Civil told journalists. "As I mentioned before, syndicated loans are not vital to the Turkish banking system. We renewed 80 percent of our syndicated loans with this deal. A 60 or 70 percent average renewal rate is a very good rate for Turkish banks."