Turkey's Bank Asya to sign loan deal on 8 April

04 April 2010

Gulf banks play major role in $75m deal

Turkey’s Bank Asya is set to sign a $75m loan on 8 April with a group of around 20 banks, including significant contributions from Gulf lenders.

The deal is also being arranged by several regional banks; Bahrain’s Arab Banking Corporation, Dubai’s Noor Islamic Bank and the UK’s Standard Chartered.

Sources close to the deal say the bank has yet to decide on the final size of the loan after Bank Asya received commitments from lenders in excess of $200m. “Bank Asya has still to decide how much it wants to raise after a significant oversubscription to this deal. A decision should be made in the next few days before the signing of the deal occurs on the 8 April,” says one banker.

The loan will have a tenor of one-year, and is priced at 2.25 per cent, with fees of 1.15 per cent. Banks will be invited to contribute either in dollars or euros to the deal.

Bank Asya is the largest Islamic bank in Turkey. The deal is structured as a currency murabaha, which means a bank buys a currency for a client, which then buys it back from the bank at a predetermined profit rate.

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