Turkey’s DenizBank has mandated arrangers to raise a US$500mn term loan for it. Mandated lead arrangers are: ABN Amro, Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Alpha Bank, American Express Bank GmbH, Arab Banking Corporation, Arab Investment Company, Bank of New York, Bank of Tokyo-Mitsubishi, Citibank, Commerzbank, Demir-Halk Bank (Nederland), Fortis Bank, HSH Nordbank, HVB Group, JPMorgan plc, Mashreqbank, National Bank of Egypt (UK), RZB, SG, Standard Bank Plc, Standard Chartered, UFJ Bank, Wachovia Bank and WestLB, London.
The facility has entered general syndication and has been structured as a dual tranche loan, with tranche A being a US$250mn 364-day term loan facility and tranche B a US$250mn two-year term loan.
The purpose of tranche A is to finance the pre-export and export finance requirements of the borrower’s customers.
Tranche B is for financing the trade-related requirements of DenizBank’s customers.
Tranche A’s initial repayment date is the date falling 364 days from the date of drawdown. There is an extension option of 364 days at each lender’s individual discretion.
Tranche B’s repayment is the date falling two years from the date of drawdown.
The margin on tranche A is 0.45% per year. For tranche B it is 0.80%.
Participation fees are as follows: for co-arrangers at US$10mn or more, 0.40 % flat for tranche A and 0.85 % flat for tranche B; for lead managers with commitments of US$7.5mn or more, it is 0.35 % flat for A and 0.75 % flat for B; for managers with US$5mn or more, 0.325 % flat and 0.70 % flat; and for participants with US$2.5mn or more, 0.30 % flat and 0.65 % flat.
The syndication roles for this Facility will be as follows:
Bookrunners are: Bank of New York, Bank of Tokyo-Mitsubishi, Bayerische Hypo- und Vereinsbank and WestLB, London.
Bank of New York is facility agent and dealing with the info memo.
Standard Bank Plc is documentation agent.
DenizBank is one of Turkey’s highest ranked medium-sized banks, providing a wide array of financial products including leasing, factoring, insurance and brokerage via its 11 subsidiaries and 206 branches.
In 1997, DenizBank was acquired by Zorlu Holding, a prominent industrial conglomerate in Turkey active in home textiles, electronics and consumer durables, information technology, energy and finance sectors. In 2004 Zorlu Group’s total assets exceeded US$5bn.
DenizBank’s total assets at the end of June 2005 amounted to US$7.479bn, with shareholders “equity totalling to US$748mn. Capital Adequacy Ratio end of 2004 17.8% and June end 2005 15.1% respectively. Free Capital Ratio 7% per end of 2004 and 6.9% per end of June 2005.