Feb. 27 (Bloomberg) -- Turkiye Vakiflar Bankasi TAO is seeking to refinance $921 million of loans at a reduced rate that will match those paid by two of its domestic rivals.
Turkey’s third-largest state lender, known as Vakifbank, is offering to pay interest at 60 basis points more than benchmark rates for a one-year self-arranged loan, according to two people with knowledge of the deal. When banks’ fees are included the so-called all-in margin rises to 100 basis points, said the people, who asked not to be identified because the terms are private.
Bank of America Corp. is helping coordinate the deal, which includes euros and dollar portions, the people said. The financing replace a one-year credit pact maturing April 9 that paid an all-in margin of 145 basis points more than benchmarks, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.
Vakifbank joins Turkey’s biggest state-owned lender TC Ziraat Bankasi AS and Akbank TAS, a lender part-owned by Citigroup Inc., in seeking one-year loans priced at 100 basis points more than benchmarks, Bloomberg data show. Lenders must commit to the Vakifbank facility by March 27, one of the people said.
Aslihan Ahiskal, an Istanbul-based spokeswoman for Vakifbank, did not answer a phone 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 email@example.com
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org