Related News

Standard Chartered has closed a US$350mn securitisation for Turkey’s Finansbank. The issue by Bosphorous Financial Services is the inaugural issue under Finansbank’s new diversified payment rights (DPR) securitisation programme.

This new DPR programme amends the Trade and Diversified Payment Rights securitisation programme established in March 2000 and effectively refinances the US$150mn of Floating Rate Series 2003-A Notes issued last year.

The issuer will issue two classes of notes:

  •  US$225mn Floating Rate Series 2004-A, with a final maturity of five years and an average life of 3.6 years.

  •  US$125mn Fixed Rate Series 2004-B, with a final maturity of five years and an average life of 3.6 years.

  • Both the 2004-A & B Series are rated Baa3 by Moody’s.

    This issue, rated Baa3 by Moody’s, represents the largest investment grade-rated Turkish securitisation transaction ever to come to the 144A/RegS market without any form of third party credit enhancement. Previous 144A securitisation issues without third party credit enhancement have not exceeded the US$250mn level. The issue achieved competitive pricing of Libor +235bp and 6.10%, respectively for the Series 2004-A and Series 2004-B Notes. 

    The issue is notable for being a significant increase over the initial March 2000 issue of US$125mn and has been revised to facilitate working with monoline insurers for future issues.

    The US$200mn issue was significantly oversubscribed and subsequently upsized to US$350mn and has been distributed to a broad range of institutional investors located in the US, Europe, the Gulf region and Asia.

    Rahul Arora, managing director responsible for ABS Distribution in the asset securitisation group at Standard Chartered in London, comments: “The distribution of this issue has been a great success for Finansbank and, importantly, has significantly widened the geographic spread of Finansbank’s investor base from the issue in 2000. The issue was placed with 14 investors and, by US dollar volume, 54% was from the US, 36% from Europe and 10% was from the Gulf region and Asia.”

    Noel Edison, managing director in asset securitisation at Standard Chartered in London, adds: “Through this issue, Finansbank has demonstrated the importance of a combined 144A/RegS issue in establishing a truly international investor base which is largely distinct from its more traditional commercial banking relationships. We are particularly pleased to see Finansbank take advantage of the over subscription above the US$200mn initial offering size by agreeing to issue US$350mn of notes. This issue is the largest investment grade Turkish securitisation issue to date that has not been credit enhanced by a monoline insurer.”

    Ozlem Cinemre, executive vice-president of Finansbank, says: “We are very pleased with our  DPR programme as it will continue to provide Finansbank the opportunity to access term funding on a flexible basis and to take advantage of unique market opportunities as and when they arise. The DPR securitisation programme forms an important part of Finansbank’s international funding efforts.


    “Among Turkish banks, Finansbank is experienced as an originator and servicer of future flow securitisations having completed the first ever DPR issue in 2000 backed by a combination of trade and diversified payment rights. The success of this issue is a testimony to Finansbank’s ability to access term funding in the international capital markets.”