Turkey’s Sovereign Wealth Fund Secures €1.1 Billion Syndicated Loan Without Treasury Guarantee

In a milestone financial move, Türkiye Wealth Fund (TWF) announced on Tuesday that it has successfully secured a €1.1 billion syndicated loan—its first-ever borrowing without a Treasury guarantee. The deal, which totals €837 million and $285 million, marks a significant step in Turkey’s efforts to strengthen financial autonomy and investor confidence.

Landmark Deal Without State Backing

The two-year loan agreement, involving 20 banks from 12 countries, reflects strong international appetite for Turkish assets, even in the absence of a government guarantee. This shift from the traditional Treasury-backed loan structure signifies a growing institutional confidence in TWF’s creditworthiness.

• Euro tranche cost: Euribor + 2% annually

• Dollar tranche cost: SOFR + 2.25% annually

This dual-currency approach was made possible by intense investor demand, with the loan achieving a 139% renewal rate compared to the 2023 syndication loan.

Investor Demand Surges

According to the fund, demand for the new financing package was more than double the borrowing amount in 2023, prompting the addition of a U.S. dollar tranche for the first time. The high interest also follows on the heels of successful eurobond issuance in February 2024 and a sukuk (Islamic bond) transaction in October 2024, both of which attracted considerable global attention.

Major Financial Institutions Involved

The transaction was coordinated by a group of leading global banks:

• ICBC Türkiye Investment Securities Inc.

• Emirates NBD Capital Limited

• First Abu Dhabi Bank PJSC

Meanwhile, Emirates NBD Bank PJSC also served as the documentation and credit agent during the financing process.

TWF highlighted the syndication as a reflection of its strategic vision to diversify funding sources, support long-term investments, and signal continued investor trust in Türkiye’s sovereign assets—despite recent political and economic challenges.