As the latest indicator of international financial circles' confidence in the Turkish economy, one of the country's largest private banks, Yapı Kredi, announced yesterday it inked an agreement for a syndicated loan of $275 million and 691 million euros from 27 institutions with a maturity period of 367 days.

Yapı Kredi has become the bank renewing the highest consistent syndicated loan in the second half of the year, a statement by the bank said.

Thus, the bank has managed to borrow $1.1 billion with the participation of 27 financial institutions from 13 countries. The maturity of the loan - to be used to finance foreign trade and provided in two separate tranches - is 367 days. The loan was provided at an annual cost of 2.75 percent points above Libor and 2.65 percentage points above Euribor. With a total of $2.6 billion syndicated loans in 2018, Yapı Kredi will continue to be the supporter of companies that contribute to the Turkish economy, the statement by the bank noted.

Commenting on the deal, Yapı Kredi CEO Gökhan Erün said since the day of its establishment, the bank's target was to support the country's economy, its people and propel Turkey forward.

Despite the fluctuating market conditions experienced on the global level, Erün said, they have managed to carry out many successful works during the year in terms of procurement of source and finance.

"First of all, we increased our capital by TL 4.1 billion [$740 million] in May in order to make more contributions to our country's economy with the support of our strong shareholders and to further strengthen our balance sheet. This has made history as the largest capital increase through rights issues carried out in the last 10 years in Turkey," he added.

Indicating that the syndicated loan that they have provided shows that confidence in Turkey in the international arena has renewed and is strengthening, Erün said: "We received this loan thanks to the strong financial structure of the Turkish banking sector and our bank, and more importantly thanks to our long-standing reputation. As Yapı Kredi, we have become the bank renewing the highest consistent syndicated loan in the second half of the year."

Bank of America Merrill Lynch International Limited has undertaken the coordination and regulation of the $1.1 billion syndicated loan provided to the Yapı Kredi, while UniCredit Bank AG London Branch has assumed the loan intermediation.

Meanwhile, in late September, Turkey's fifth-largest bank by assets, Akbank, managed to borrow $980 million from 23 banks operating in 11 countries with a one-year maturity period.

Out of the $980 million loan, $285 million of the total was in dollars at an annual cost of 2.75 percent points above Libor. The remainder was made up of 591 million euros at a cost of 2.65 percentage points above Euribor. Meanwhile, Asian Infrastructure Investment Bank (AIIB) also provided $200 million in loans for the Industrial Development Bank of Turkey (TSKB). The Turkish bank will provide long-term financing for renewable energy and energy-efficient projects.