On August 15, 2016, CEE Legal Matters reported that the Esin Attorney Partnership had advised Burgan Bank on a syndicated loan.
Burgan Bank Head of Consultancy & Corporate Governance Unit, Nesteren Caliskan, worked closely on the deal and agreed to answer our questions.
This is the second syndicated loan Burgan Bank has obtained in the past two years, following a similar one last year. The 2015 loan was reported to be "obtained for general trade finance purposes.” Was this most recent loan obtained for the same purpose(s), or for something different?
N.C.: This is the second syndicated loan obtained for general trade finance purposes as well.
Why was the dual-tranche structure chosen?
N.C.: Although we prefer 367 days, some of the participant banks define one year as 364 days and are constrained, tenor-wise, by their Credit Committee approvals. In order to enable these kind of banks to participate in the syndicated loan deal we offered 364 and 367-day tranche options.
How did the recent coup attempt affect the process of putting this loan together? Did it delay or affect the negotiations in any way?
N.C.: There was no negative reaction or any withdrawal of commitments from the investors’ side, which we really appreciate this approach, and see this as a trust to our organization and the country.
What was your level of involvement in the matter? Did you delegate the Esin Attorney Partnership to handle all negotiations, then review the final product and step in at the end to authorize, or were you personally involved in all negotiations? Can you elaborate on your role?
N.C.: As in-house legal department, we have a motivation to establish a close relationship with all relevant parties, such as business units, our vendors, and our external lawyers. It is very precious to combine different experiences and know-how, that’s how we build up most of the major projects. And the answer is yes, as in-house legal department we and our bank's FI team worked closely with Esin and tried to be involved in most of the negotiations.
Why did you choose The Esin Attorney Partnership as your external advisers on these two loans?
N.C.: Their business-wise perspective is one of the main reasons for choosing Esin. And they always respond to you very timely which is very important considering the dynamic business environment.