Türkiye Vakıflar Bankası T.A.O. (the “Borrower” or “VakifBank”) is pleased to announce the successful conclusion of its USD 160 Million and EUR 421 Million Term Loan Facilities signed on 25 November 2020. The facilities are structured as a 367 days dual currency financing. Proceeds of the facilities will be utilized for the financing of export contracts and for general trade finance purposes.
The Facilities achieved a strong global response with the participation of 27 banks across North America, Europe, Asia and the Middle East joined the transaction. Participating banks included 7 Mandated Lead Arrangers (including coordinators), 2 Lead Arrangers and 18 Arrangers.
Amidst a challenging market backdrop and uncertainty in the global markets due to ongoing Covid-19 across the world, the success of the deal is a testament to Vakifbank’s strong fundamentals and successes through volatile markets, as well as the resilience of the Turkish financial sector
Emirates NBD Capital Limited and The Commercial Bank (P.S.Q.C.) Qatar acted as Joint Coordinators on the transaction.
Emirates NBD Capital Limited also acted as Documentation Agent and Emirates NBD Bank (P.J.S.C.) acted as Facility Agent.
We would like to share with you some important highlights of 3Q20 financials which we announced on 9 November 2020.
VakıfBank delivered net income of TL 4,341 million and TL 5,541 million bank-only and consolidated basis, respectively as of 3Q20. Annual ROAE materialized at 15% in 3Q20 which is above the sector average of 11.6%. As a conservative and pro-active state bank, VakıfBank continued to increase its all coverage ratios as well as maintained TL 852 million free provisioning on its balance sheet. Stage 2 coverage ratio increased to 13.6% in 3Q20 from 5.9% in YE2019, Stage 3 coverage ratio increased to 75% in 3Q20 from 70.4% in YE2019 and total coverage ratio also increased to 124.4% in 3Q20 from 90.4% in YE2019.
As the 3rd largest bank in terms of asset size, total cash loans and total deposits within Turkish banking sector; asset size, total cash loans and total deposits of VakıfBank reached to TL 638 billion, TL 411 billion and TL 394 billion, respectively as of 3Q20. The market shares in total assets, cash loans and total deposits increased to 10.6%, 11.6% and 11.4% which is clearly showing ongoing strong commitment and support of VakıfBank to Turkish economy.
On the solvency side, VakıfBank continued to have solid solvency ratios with a total CAR, AT1 and CET1 ratios of 17.19%, 15.16% and 12.04% in 3Q20, respectively.
Currently, the Ministry of Treasury and Finance, Turkey Wealth Fund and VakıfBank Pension Fund hold 37.5%, 36% and 10.3% shares in the Bank’s shareholder structure, respectively and the remaining 16.2% is open to public.
In 2020, VakıfBank maintained its pioneer and active role in international debt capital markets through following funding and capital market transactions despite the challenging market conditions so far:
- Issued the largest ever amount of the Eurobond transaction so far, amounting USD 750 million with a maturity of 5 years in January,
- Provided USD 325 million 3 year-term loan from ICBC Turkey with 130% roll over ratio in April,
- Renewed the first syndication loan of the year amounting USD 950 million equivalent in total with 90% roll-over ratio, which is the highest among peer banks in April,
- Provided USD 250 million 23 year-term (with 7 years grace period) loan from the World Bank which is the largest amount obtained within a single transaction from international development banks in September,
- Provided funding through bilateral and post-financing transactions with correspondent banks amounting USD 940 million year to date.
- Renewed the second syndication loan of the year amounting USD 660 million equivalent in total with 109% roll-over ratio and became the only bank with the roll-over ratio above 100% level among peer banks in November.