The new loan will replace a $930 million equivalent one-year loan which matures at the end of September.
Turkey’s Akbank is expecting to sign a loan refinancing in late September, reported Reuters.
The lender’s loan refinancing was launched in early August, along with deals for Turk Ekonomi Bankasi as well as Turk Eximbank, but the deals have been delayed by Turkey’s financial crisis hampering banks’ attempts to refinance $6.4 billion of syndicated loans before the end of the year.
Akbank is usually the first Turkish lender to complete a loan in the second round of Turkey’s biannual bank loan re-financings in August, and its deal sets a pricing benchmark that other Turkish banks follow.
Fitch Ratings and Moody’s said that the continued depreciation of the lira has heightened the risk for Turkish banks and could lead to further negative rating actions by the agencies.
The lira has lost 40 per cent of its value this year and hit a record low of 7.24 to the greenback on 16 August 2018.