Leading domestic institutions have repaid rather than rolled-over a group of short-term syndications mostly signed late in 1993. However, conditions are improving gradually for Turkish risk in cautious international markets, say Istanbul bankers.
The repaid syndications include:
Emlak Bankasi – a $70 million, one-year deal, at a margin of 65 basis points above London international offered rate (Libor). Arranger was Bankers Trust. Lead managers also were DG Bank, Gulf Bank and Impex Bank. Managers were Arab International Bank and Bahraini Saudi Bank. Repaid in November. Bankers Trust had the largest share of $17 million, followed by Akbank with $10 million. Impexbank was one of three small institutions closed by the Council of Ministers in the spring in the depths of the foreign exchange crisis. Its $5 million share was transferred to Gulf Bank.
Garanti Bankasi – apart from a DM 120 million extension, later in December Garanti will make a bullet payment on a $60 million, two-year deal at 1 per cent over Libor arranged by Banque National de Paris, Sabanci Bank, and Dresdner Bank.
Is Bankasi. Around $110 million. One year at 77.5 basis points all-in over Libor. Arrangers were Sumitomo Bank, Dai-Ichi Kangyo, National Bank of Kuwait, RBC Europe, and Societe Generale. Repaid on 9 December.
Akbank – $100 million at 85 basis points all-in over Libor. Arrangers were Chemical Bank, Commerzbank, Fuji Bank, Societe Generale, and Standard Chartered. Repaid on 2 December.
Eskisehir Bankasi (Esbank) – $75 million, one year at 1.65 per cent all-in over Libor. Arrangers: Fuji Bank, ING, and Standard Chartered. Repaid in November. The institution had already repaid foreign loans totalling $100.5 million in 1994.
Iktisat Bankasi – $45 million, arranged by Bank of Tokyo and Bank of America. Repaid on 6 December.
‘In 1995, we are thinking of new syndications, but it all depends on the market situation,’ says Zeki Onder, international manager for syndications at Iktisat Bankasi. ‘For the moment, we have an abundance of foreign exchange, and can supply our own needs from our deposit base.’
Foreign exchange reserves held by the commercial banks totalled $10,352 million on 18 November. However, demand for trade financing facilities is expected to pick up during 1995. Banks will then have to turn to the international markets again.