Dogan Sirketler Grubu Holding AS, owner of Turkey’s biggest listed media group, is staying out of the market for syndicated loans as costs rise and international banks scale back amid Europe’s debt crisis.
Dogan, which borrowed $160 million through a syndicated loan together with Yazicilar Holding AS in January last year, hasn’t tapped the market this year.
“As compared to the past, underwriting is not possible in syndications” because “banks are not sure if they can distribute it,” Mehmet Yoruk, Dogan’s vice chairman for finance and treasury, said in response to e-mailed questions yesterday. “European banks have their own problems,” and “funding everywhere became expensive,” he said.
The lack of appetite for underwriting is sending Turkish companies in search of alternative financing, including bilateral loans and local bonds, Yoruk said.