Turkey's Akbank (AKBNK) on October 26 announced that it has obtained a $542mn sustainability-linked syndicated loan in five tranches.

(Story chart: Turkish corporates’ external debt rollover rates.)

The loan's two 367-day tranches are worth $134.5mn and €146mn, while its two-year and two-day tranches are worth $132mn and €5mn. The three-year and two-day tranche stands at $106mn.

Thirty-seven banks from 19 countries, including five newcomers, placed $891mn worth of combined bids for the facility. The two-year and three-year tranches are sustainability-linked.

Spreads fall a little more

The cost of the 367-day USD-tranche stood at the guaranteed overnight financing rate (SOFR) plus 125bp, while the cost of the 367-day EUR-tranche was the euro interbank offered rate (Euribor) plus 100bp.

The costs of the two-year tranches, meanwhile, stood at SOFR+1.75% and Euribor+1.45%. The cost of the three-year tranche was released as SOFR+2.00%.

The benefits of Turkey’s so-called economic normalisation policy applied since June 2023 have been clearly observed in external debt rollovers. Since the new policy was brought in, the spreads on the 367-day USD tranches have fallen by 300 bp while two-year and three-year tranches have re-emerged.

The 125-bp spread on the 367-day USD-tranche remained unchanged compared to the spring season, which was the lowest seen since the 85 bp that was obtained in October 2016. It is also 25 bp lower compared to October 2025 (See full list here).

The spreads on the 2-year and 3-year USD tranches also remained unchanged compared to April this year while they were lower by 15 bp compared to a year ago.

The spread on the 367-day EUR tranche was lower by 10 bp compared to April and by 15 bp compared to October 2025 while the spreads on the 2-year tranche were lower by 15 bp and 20 bp, respectively.

107% rollover rate

In October 2025, Akbank rolled its loan at a renewal rate of 114% and at costs of SOFR+1.50% and Euribor+1.25% for the 367-day tranches. The spreads on the 2-year tranches came in at 190 bp for USD and 165 bp for EUR while the spreads on the 3-year USD tranche stood at 215 bp.

The 367-day tranches were worth $152mn and €132mn. Additionally, the $159.5mn and €43.5mn 734-day tranches of the October 2024 facility matured. As a result, the currency-adjusted renewal rate of the latest loan stood at 107%.

In line with local peers, Akbank has a BB-/Stable rating from Fitch Ratings and a Ba3/Stable from Moody’s Investors Service.

Loans rolled twice a year

Akbank has another syndicated loan. In April 2026, Akbank rolled the loan at a renewal rate of 136%. The costs of the 367-day tranches were released at SOFR+1.25% and Euribor+1.10% while the two-year costs stood at SOFR+1.75% and Euribor+1.60%. The three-year cost came at SOFR+2.00%.

Turkish banks roll their syndicated loans twice a year, with one season in spring (April-July) and the other in the autumn (October-November).

Akbank launches both seasons by setting the Turkey benchmark for the interest rates. All leading banks release identical costs, while some of the lenders, particularly the smaller ones, pay higher fees.

Central bank chart: Top 10 Turkish banks’ combined syndicated loan renewal rates and costs.

The share of syndicated loans in the external funding composition of Turkey and Turkish banks has declined in recent years. Turkey rolls over a combined sum of around $200bn each year.

Despite the lower share in the composition, the banks’ syndicated loan renewals are a good indicator when tracking developments in the sustainability of Turkey’s external debt burden. They share exact maturities and costs, setting benchmarks.