Turkiye Garanti Bankasi AS, Turkey’s biggest bank by market value, borrowed $400 million from the Overseas Private Investment Corporation, the development-finance arm of the U.S. government.
The loan is over a 14-year period and will be used to finance small-and-medium sized enterprises, the Istanbul-based lender said in a filing today.
“Garanti has become the Turkish institution receiving the highest amount in loans from OPIC with this latest transaction,” Deputy Chief Executive Officer Ali Fuat Erbil said. “We worked on our own and didn’t require the help of a foreign bank on this and that is a first in Turkey.”
Garanti is 25 percent owned by Banco Bilbao Vizcaya Argentaria SA of Spain. The Turkish bank’s shares were unchanged at 7.66 liras at 3:04 p.m. in Istanbul trading today.