Citi and Soci&eaute;té Générale have closed a five-year US$300mn syndicated term loan facility for Turkey’s Dogus Holding. It is the first time the borrower has been able to secure a five-year tenor.
The loan is being used to finance the trade finance needs of the company’s various subsidiaries, as well as general corporate purposes. It is replacing US$100mn two-year facility arranged in September 2005. The new facility has a bullet repayment profile, and pays a margin of 1.325% per year.
Syndication was launched at the end of June to a group of relationship banks. A total of ten banks joined the facility, with EDC just announcing it contributed US$20mn towards the financing.
“Dogus Holding is an important player in Turkey, in addition to key European and emerging markets, and has a consistent track record in working with Canadian suppliers,” comments Eric Siegel, president and CEO of EDC.
Turkey is Canada’s 12th largest trading partner in the emerging markets, and exports to Turkey doubled between 2003 and 2006. In particular, EDC’s participation in this loan facility is aimed at increasing Canadian exports into the construction and transportation sectors.
The Dogus Group is one of the largest conglomerates in Turkey, active across five sectors: finance, automotive, construction, tourism and media.