VKF_FRAE_2017

71 VakıfBank Annual Report 2017 In February 2017, VakıfBank exchanged a part of Basel II-compliant notes amounting to USD 227.6 million due in 2022 to Basel III-compliant notes by adding the pioneering and innovating Turkish bank in international markets. »» SYNDICATION LOANS VakıfBank signed a syndication loan agreement amounting to USD 188.5 million and EUR 716.5 million, USD 967 million equivalent in total with the participation of 37 bank in April 2017. The all-in cost of the one-year term loan is LIBOR +1.15% for USD tranche and Euribor +1.05% for Euro tranche. In the second half of 2017, VakıfBank signed the second syndication loan agreement of the year amounting to USD 131 million and EUR 634 million, USD 891 million equivalent in total with a cost of one-year term loan of Libor +1.35% and Euribor +1.25% with the participation of 22 banks. With these transactions, the Bank obtained a total of USD 1.86 billion in syndicated loans in 2017. »» SUBORDINATED LOANS VakıfBank exchanged a part of Basel II- compliant notes amounting around USD 227.6 million to Basel III-compliant notes by adding its leading and innovative Turkish Bank image in the international debt capital markets. The coupon rate of these notes having a maturity of November 2027 and a call option in November 2022 has been set at 8%. This exchange transaction had a 50 basis points positive impact on the Bank’s year-end 2016 capital adequacy ratio. In September 2017, the Bank issued a subordinated bond amounting TL 525 million with 10 year maturity and having a call option at the end of 5 years, which created a more than 30 basis points positive impact on the capital adequacy ratio. »» SUPPORTING THE REAL ECONOMY VIA BILATERAL AGREEMENTS As a result of the agreement signed with ICBC Dubai in March 2017, the Bank procured a three-year USD 250 million loan to be used in foreign trade finance. Under the RCA agreement signed with EBRD, in order to support the import and export transactions of the customers, the Bank procured loans of EUR 42 million and USD 3.5 million with different maturity terms in 2017. »» LOANS PROCURED FROM INTERNATIONAL FINANCIAL INSTITUTIONS VakıfBank continues to collaborate with the European Investment Bank (EIB), the World Bank and the European Bank for Reconstruction and Development (EBRD), KfW and French Development Agency (AFD) to provide long-term, cost-effective funding to the real economy. »» ACTIVITIES WITH EUROPEAN INVESTMENT BANK Due to its successful performance in the Greater Anatolia Guarantee Facility (GAGF-I) procured from EIB through an agreement in 2010 amounting to EUR 75 million, EUR 50 million was allocated to VakıfBank in 2015. This facility was allocated to customers in 2015. In 2015, under the scope of the GAGF II project, an additional facility of EUR 25 million was provided to VakıfBank, which allocated all of it in 2016. Under the scope of this project, a last tranche of EUR 50 million was provided to VakıfBank, which completed loan allocations in 2017. All funding sources provided under the GAGF project have a maturity of 5 years and there will be a one-off principal repayment when maturity ends. VakıfBank provides 100% co-financing at all stages of the project. Under the guarantee of the Turkish Undersecretariat of Treasury, a EUR 75 million Climate Change Loan Agreement was signed between VakıfBank and European Investment Bank on December 9, 2011, to be used in financing renewable energy and energy efficiency investment. Under the scope of this In 2017, a loan of USD 250 million was provided from ICBC Dubai and loans amounting EUR 42 million and USD 3.5 million from EBRD, for the usage in trade financing.