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State-owned TC Ziraat Bankasi AS will use the loan to finance all industries that support the economic improvement of the country, particularly exporters, according to a statement to the Anadolu Agency, which confirmed a Bloomberg News report earlier on Friday.
The loan will have have a maturity of up to five years, according to the statement. Details on pricing weren’t given.
The deal will be the largest bilateral overseas borrowing by a Turkish bank and marks a major shift in international banks’ appetite for lending to Turkish banks as the government starts to adopt more orthodox monetary and fiscal policies.
Since Mehmet Simsek, a former Merrill Lynch bond strategist, took over as the country’s finance minister and Hafize Gaye Erkan assumed the role of central bank governor, Turkey has increased the benchmark rate by 30 percentage points to 40%, a move which has been widely welcomed by financial markets.
Last month, Ziraat Bank said it secured a $625 million loan from two investment banks it didn’t identify.
(Recasts with Ziraat Bank’s confirmation of the loan)
©2023 Bloomberg L.P.
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