Story chart: turnover ratio of syndicated loans and cost of syndicated loans.
The cost of the USD tranche was the secured overnight funding rate (SOFR) plus 425 basis points. The cost of the EUR tranche was the Euro interbank offered rate (Euribor) plus 400bp.
The exchange rate-adjusted renewal rate was very low at 60%, while spreads reached record highs.
Benchmarks are extremely high at the moment as SOFR broke above the 3% level, compared to the 0.05% seen in
Recently, all benchmarks have risen alongside the global trend of monetary tightening.
Turkish banks hold 367-day syndicated loan renewal seasons – a “trick” deadline to register long-term loans using two extra days – twice a year, with a season in the spring (April-May) and l another in the fall (October-November).
During the last years,
In April this year, the government-run Ziraat Bank kicked off the spring season. In July,
The spring season lasted from April to July. Eleven banks renewed
The costs of the USD tranches were the secured overnight funding rate (SOFR) plus 275 basis points. The EUR tranche costs were Euribor + 210bp. In spring 2021, the costs amounted to Libor + 2.50% and Euribor + 2.25%.
In the just-launched autumn season, nine Turkish banks will renew a combined sum of
In August of this year, rumors
Given the situation regarding the widely questioned reliability of Turkey’s official macroeconomic data releases, syndicated loan renewals are a good indicator to monitor the sustainability of Turkey’s external debt burden.
Table: Complete list of syndicated loan renewals of Turkish banks.
|October 22||60%||367 days||SOFR+4.25%||178 €||Euribor+4.00%|
|Jul-22||TSKB (TSKB)||63%||367 days||90 €|
||300 €||100%||367 days||SOFR+2.75%||Euribor+2.10%|
|Jun-22||Isbank (ISCTR)||88%||367 days||SOFR+2.75%||483 €||Euribor+2.10%|
|Jun-22||120%||367 days||204 €||364 days||Chinese
|May-22||Guaranteed BBVA (GARAN)||100%||367 days||SOFR+2.75%||291 €||Euribor+2.10%|
|May-22||91%||367 days||SOFR+2.75%||432 €||Euribor+2.10%|
|May-22||Turk Eximbank||104%||1 year||504 €|
|May-22||118%||367 days||SOFR+2.75%||212 €||Euribor+2.10%|
|May-22||Vakifbank (VAKBN)||101%||367 days||SOFR+2.75%||739 €||Euribor+2.10%|
|Apr-22||108%||367 days||SOFR+2.75%||329 €||Euribor+2.10%|
|Apr-22||100%||367 days||SOFR+2.75%||814 €||Euribor+2.10%|
|Nov-21||Vakifbank (VAKBN)||102%||367 days||Libor+2.15%||314 €||Euribor+1.75%|
|Nov-21||100%||367 days||Libor+2.15%||135 €||Euribor+1.75%|
|Nov-21||Guaranteed (GARAN)||101%||367 days||Libor+2.15%||247 €||Euribor+1.75%|
|Nov-21||Isbank (ISCTR)||107%||367 days||Libor+2.15%||434 €||Euribor+1.75%|
|Nov-21||Eximbank||115%||1 year||Libor+2.30%||419 €||Euribor+1.90%|
|21st of October||110%||367 days||Libor+2.15%||363 €||Euribor+1.75%|
|21st of October||96%||367 days||Libor+2.15%||397 €||Euribor+1.75%|
|21st of October||BER||114%||367 days||Libor+2.15%||231 €||Euribor+1.75%|
|21st of October||88%||367 days||Libor+2.15%||207 €||Euribor+1.75%|
©2022 bne IntelliNews , source