Yapi Kredi Said to Join Vakiflar Seeking Margin to Match Peers

Turkish lenders Yapi & Kredi Bankasi AS (YKBNK) and Turkiye Vakiflar Bankasi TAO (VAKBN) are seeking loans that pay the same rate of interest as debt raised by their peers, two people with knowledge of the matter said.

Yapi Kredi and Vakifbank have offered lenders an interest margin and fee totaling 75 basis points, or 0.75 percentage point, more than benchmark rates, said the people, who asked not to be identified because the terms aren’t public. The one-year loans will refinance debt and will include both euro and dollar portions.

Turkish banks often seek to match the interest rates paid by competitors when raising new financings. Akbank TAS (AKBNK), Turk Ekonomi Bankasi AS (TEBNK) and Turkiye Is Bankasi (ISCTR) AS have signed or are raising loans also paying a combined interest margin and fee of 75 basis points, according to data compiled by Bloomberg.

Yapi Kredi has a $1.1 billion loan that matures in October and state-run Vakifbank has a $735 million facility due to repay this month, Bloomberg data show.

Officials at Vakifbank and Yapi Kredi didn’t respond to telephone calls and e-mails seeking requests for comment on the transactions.

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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