Bloomberg News

Dexia’s Denizbank Pays More for Syndicated Loan Than Rivals

October 25, 2011

(Updates with rivals’ costs in last paragraph.)

Oct. 25 (Bloomberg) -- Denizbank AS, the Turkish unit of Dexia SA, will pay more interest for a syndicated loan than its rivals, getting $650 million at a rate of 130 basis points above international benchmarks.

Bank of America Merrill Lynch, Citigroup Inc., Commerzbank AG, HSBC Holdings Plc, JPMorgan Chase & Co. and UniCredit SpA were among 11 banks that participated in the loan, which included arrangers Wells Fargo & Co. and Standard Chartered Plc, Denizbank said in an e-mailed statement today.

Dexia hired Merrill to examine strategic options for Denizbank including a possible sale on Oct. 17. HSBC Holdings Plc is among banks interested, two people with knowledge of the sale said on Oct. 19. OAO Sberbank and Qatar National Bank SAQ are also interested and QNB has hired Citigroup to advise, the people said, declining to be identified because the talks are private.

Yapi & Kredi Bankasi AS, the Turkish bank part-owned by UniCredit SpA, got a one-year syndicated loan of $285 million and 687 million euros at 100 basis points over international benchmarks on Sept. 30. BNP Paribas SA’s unit Turk Ekonomi Bankasi AS was also among banks that borrowed at one percentage point above benchmarks over the past three months.

--Editor: Mark Bentley

To contact the reporter on this story: Aydan Eksin in Istanbul at aeksin@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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