Mandated lead arrangers have been appointed to arrange the refinancing and increase of Türkiye Vakiflar Bankasi’s US$350mn 364-day term trade finance loan facility dated June 24.

Banks involved are: ABN Amro, Abu Dhabi Commercial Bank, Alpha Bank, American Express Bank GmbH, Arab Investment Company, Bank of New York (facility agent), Bank of Nova Scotia, Bank of Tokyo Mitsubishi (bookrunner), Banque Saudi Fransi, BayernLB, Calyon (bookrunner), Citibank, Commerzbank, Demir-Halk Bank (Nederland), Dresdner Kleinwort Wasserstein (acting through Dresdner Luxembourg), Emporiki Bank of Greece, Erste Bank, HSBC Bank, HSH Nordbank, HVB Group (bookrunner), ING, JPMorgan plc, Mashreqbank, Mizuho Corporate Bank, Natexis Banques Populaires, National Bank of Egypt (UK), RZB, Standard Bank plc, Standard Chartered Bank (info memo), Sumitomo Mitsui Banking Corporation Europe, UFJ Bank, Wachovia Bank and WestLB, London (bookrunner; documentation).

Vakif Bank is the seventh largest bank in Turkey with total consolidated assets of TL25.5bn as of December 31, 2004. The bank is majority-controlled by a state organisation, the General Directorate of Foundations.

Traditionally more of a corporate bank, VakifBank has increased its retail banking profile over the past decade, with retail customers now representing about 50% of its loan book. The bank’s new strategy focuses on increasing lending, particularly to small and mid-sized enterprises (SMEs) and retail customers, and increasing non interest revenues.

Vakif Bank is rated B+ (positive outlook) by Fitch and B2 (positive outlook) by Moody’s .

The margin is Libor plus 45bp per year, stepping down to 40bp upon the borrower being assigned a long-term foreign currency rating of BB-0 or better by S&P.

Fees: arranger  – US$10m or more, 35bp; co-arranger – US$7.5mn to US$9.9mn, 30bp; lead manager  – US$5mn to US$7.4mn, 25bp; manager – US$2.5mn to US$4.9mn, 20bp; participant – less than US$2.5mn, 15bp.