WASHINGTON, D.C., May 18 -- The International Finance Corporation (IFC) and J.P. Morgan have jointly arranged medium-term financing of US$120 million for Turkiye Garanti Bankasi A.S., a Turkish private sector bank. The financing involves a US$100 million IFC loan, of which US$20 million is for IFC's own account and US$80 million has been syndicated with commercial banks as participants in IFC's loan. In addition a US$20 million floating rate note issue led by J.P. Morgan has been placed, a portion of it with banks participating in the loan. The US$80 million syndicated portion of IFC's loan was lead managed by J.P. Morgan; Bank of Tokyo Ltd.; Commerzbank AG; Dai-Ichi Kangyo Bank Ltd.; Kredietbank; and Sanwa Bank Ltd. Co-lead managers were Westdeutsche Landesbank; Banque et Caisse d'Epargne - Luxembourg; Banco Exterior de Espana; Banque Francaise du Commerce Exterieur; and Societe Generale. The managers were The Arab Investment Company; Osterreichische Volksbanken; American Express Bank; ASKL-CGER Bank; Bayeri
sche Vereinsbank; CIC Paris; Die Erste Osterreichische Spar-Casse Bank; GiroCredit Bank; and Nordbanken. "IFC has structured this multi-tranche facility in cooperation with J.P. Morgan to enable Turkiye Garanti Bankasi to expand its trade finance activities on the basis of longer-term funding than has been available to it hitherto," said Edward Nassim, Director of IFC's Europe Department. "We and J.P. Morgan are delighted with the positive market response to this US$120 million package," said Francis Hamilton, IFC Head of Syndications. "Both the size and the length of maturity of the transaction are unprecedented for private Turkish banks." said IFC's investment officer, Sanjiv Kapur. Turkiye Garanti Bankasi was established in 1946 as a small regional bank. It has grown into the second largest private Turkish bank in terms of capitalization and the fourth largest in terms of assets. The bank is controlled by its founder, Mr. Ayhan Sahenk, and the Dogus Group, which he also controls. IFC, a member of the World
Bank Group, is the largest multilateral source of direct loan and equity financing for private sector projects in developing countries. (30)
