ING Bank’s Turkish arm ING Bank AŞ has signed a syndicated trade finance loan with dual tranches comprising €190mn and US$96mn.
Twenty banks from 11 countries participated in the transaction that closed on August 1, with Standard Chartered acting as sole co-ordinator and Mizuho as the facility agent for the loan.
The mandated lead arrangers are Barclays, Doha Bank, Goldman Sachs International, JP Morgan Securities, Standard Chartered, Sumitomo Mitsui Banking Corporation Europe and Sberbank (Switzerland and Europe). An additional 12 unnamed banks committed to the facility.
The margins of the 367-day loan are 250 basis points over Libor and 240 basis points over Euribor.
The borrower secured commitments of US$508mn, soaring above the targeted US$300mn that was targeted, but chose not to take the oversubscription.
ING Bank AŞ is a wholly-owned subsidiary of ING Bank. Its core areas include wholesale, mid-corporate and SME, banking, insurance and pension services, digital banking and property loans. The ING Group previously expanded its operations in Turkey through the acquisition of Oyak Bank in December 2007.
Earlier this year, GTR hosted Turkey’s trade finance industry in Istanbul to assess the state of play for the country in 2019, after it officially entered a recession at the end of last year.
Delegates at GTR Turkey 2019 were told that the Turkish trading environment is widely predicted to remain turbulent, while troubles brought on by the recent inflation spike and major drop-off in the lira will linger.
“The markets are in a standby mode, waiting more stability and access to international liquidity in the coming weeks. During this challenging period, Turkish companies and especially exporters are working hard to keep up their activity levels,” said Riza Kadilar, chairman of the GTR Turkey conference.