Turkey’s Ziraat Bank Said to Hire Bank of America for Loan Deal

TC Ziraat Bankasi AS, Turkey’s biggest state-owned lender, hired Bank of America Corp. (BAC) to arrange a one-year syndicated loan, according to two people with knowledge of deal.

Ziraat is offering to pay an interest margin at 60 basis points more than benchmark rates for a deal denominated in dollars and euros, said the people, who asked not to be identified because the terms are private. The all-in margin, when fees are included, is 100 basis points, they said. A basis point is 0.01 percentage point.

Ankara-based Ziraat is offering lenders six levels of commitment, with the largest amount at $45 million or 35 million euros ($46 million) for an initial mandated lead arranger title.

Lenders have been asked to reply to the request by March 8, after which the size of the deal will be decided, the people said.

Ziraat is offering the same interest margin as domestic rival Akbank TAS (AKBNK), which is seeking to refinance $1.2 billion of loans maturing in March, people with knowledge of the deal said Feb. 11..

Officials in Ziraat’s investor relations department didn’t immediately return a call seeking comment. A Bank of America spokeswoman in London couldn’t immediately comment.

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.

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