Largest security issuance confirms trust in Turkish capital markets

As a consequence of a successful public and private finance partnership, Turkey issued the largest volume of asset-backed securities, worth TL 3.15 billion ($596 million), providing liquidity relief for the banks

COMMITTED to deepening capital markets via diversification of financial instruments and raising more funds through alternative and less costly methods, Turkey issued the largest volume of asset-backed securities Friday and the demand of 118 investors on these securities was 2.43 times higher than the originally planned amount of TL 3.15 billion ($596.26 million). While the move provided liquidity relief for banks, it marked a successful example of public-private finance partnership. According to a statement released by the Treasury and Finance Ministry, the issuance of the largest asset-backed security in Turkey was carried out successfully by the Asset Finance Fund established under the Turkish Development and Investment Bank (TDYB). Leading investment banks – Aktif Investment Bank, Garanti Investment, Halk Investment and Ziraat Investment – participated in the issuance. “Most of the demand in asset-backed securities came from banks, pension funds, investment funds and insurance companies and four Turkish banks that carried out the issuance boosted their liquidity as much as the amount of the issued securities,” the ministry’s statement said. The ministry said the securities with a nominal value of TL 3.15 billion had a five-year maturity and a fixed-coupon payment of three months.