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Akbank TAS, the Turkish bank part owned by Citigroup Inc., is seeking to cut the rate it pays on $1.2 billion of loans maturing in March, according to three people with knowledge of the deal.
The Istanbul-based lender is offering to pay interest at 100 basis points more than benchmark rates for a one-year piece and 125 basis points for a two-year portion, said the people, who asked not to be identified because the terms are private. Lenders can commit to both loans in either euros or dollars, they said.
Bank of America Corp. is arranging the deal, the people said. The deal allows the firm to reduce interest from the 135 basis-point spread paid on a one-year loan signed in August, according to data compiled by Bloomberg. The loan being replaced has a margin of 145 basis points more than benchmarks, the data show.
A telephone call to Akbank’s press office wasn’t immediately returned.
A basis point is 0.01 percentage point. The interest on the loans includes fees paid by the borrower to banks.
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