Turkey’s Wealth Fund receives 1.25 billion euro loan

* Photo: Anadolu Agency (AA)

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The Wealth Fund released a statement yesterday (March 24) and announced that it has completed syndication loan transaction with 14 banks from countries in Asia, Europe, North America, Middle East.

As reported by the state-run Anadolu Agency (AA), the Turkey Wealth Fund on Wednesday stated that it has finalized a syndication loan transaction amounting to 1.25 billion Euro (1.48 billion US Dollars).

According to the fund's statement, a syndicated loan of 1 billion Euro used in March 2019 was renewed, with 4 new banks joining the syndication.

The annual pricing of the two-year loan was 25 basis points below the cost incurred in 2019, and was realized as Euribor +2.25 percent, it said.

Under the joint coordination of ICBC and Citi, ICBC was the lead bookrunner, Citi was the bookrunner and documentation representative, and HSBC was the credit representative.

Banking Corporation, Emirates NBD, HSBC, ING, Intesa Sanpaolo, JP Morgan, Qatar National Bank, and Sumitomo Mitsui Banking Corporation joined the syndication as mandated lead arrangers with Banco Bilbao Vizcaya Argentaria, Bank of America, Barclays, and Societe Generale involved at the lead arranger level.

About Turkey Wealth Fund

The Turkey Wealth Fund bill was submitted to the Parliament on August 2, 2016. The Wealth Fund was established under Law No. 6741 after the parliament passed the bill on August 26, 2016.

The stated purpose of the Turkey Wealth Fund was to contribute the country's economy to overcome its structural problems.

However, it caused controversy that the fund was exempted from taxation, would not have to abide by the laws on protecting natural and cultural assets and it would not be audited by the Court of Accounts.

Eleven state-owned companies were handed over to the fund: Ziraat Bank, BOTAŞ, PTT, TÜRKSAT, Turkish Petroleum Corporation, ETİ Maden, Türk Telekom, Halkbank, Turkish Airlines and Çaykur.

TWF is now the owner of or a stakeholder in 23 companies, two licenses and real estate, Vakıfbank; the country's stock exchange market Borsa İstanbul, Turkish Airlines, Turkcell GSM company, and natural gas firm Botaş. (HA/SD)