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Türkiye’s state-run lender VakifBank locked in a sustainability-linked syndicated loan worth $1.2 billion equivalent, drawing participation from 44 banks across 18 countries and posting a renewal rate above 110%, the bank announced Monday.
The financing package consisted of two separate currency tranches under a 367-day maturity structure, with VakifBank securing $484 million in U.S. dollar-denominated funding and €574 million ($667.7 million) in euro-denominated funding, the company stated.
The cost of borrowing was set at the Secured Overnight Financing Rate (SOFR), a key U.S. dollar benchmark interest rate, plus 1.25% for the dollar tranche, while the euro tranche was priced at Euribor plus 1.10%.
VakifBank General Manager Osman Arslan said strong participation in the transaction reflected both the bank’s standing in international markets and continued confidence in Türkiye’s economy.
"The participation of 16 banks at the highest level and the inclusion of five new banks that were not part of the syndication in the same period last year clearly show that our bank continues to maintain its strong presence in international markets and that confidence in the Turkish economy remains intact," Arslan noted.
Arslan pointed to the bank’s long-standing correspondent banking relationships as a key factor behind the deal’s renewal rate exceeding 110%.
He also emphasized that VakifBank kept up its overseas borrowing drive through the first months of 2026 with a diversified funding strategy and disciplined balance sheet management.
According to the bank, the lender secured $5.8 billion in new international funding during the first five months of the year. That figure included a €1.5 billion financing package backed by the World Bank and a $1.3 billion DPR transaction carried out with Apollo Global Management.
The funds raised abroad would continue to be directed toward export-focused sectors, employment, technology, productivity, and digital transformation projects in line with the bank’s development-oriented banking strategy.
VakifBank stands as Türkiye’s second-largest bank, with total assets reaching ₺5.65 trillion ($124 billion) in the first quarter of 2026.
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