Istanbul-listed Isbank obtains $250mn five-year securitisation loan

By Akin Nazli in Belgrade November 6, 2023

Isbank (ISCTR) has obtained a five-year loan worth $195mn and €50mn under its diversified payment rights securitisation programme (DPR), the lender said on November 3.

The facility was provided in four tranches. The European Bank for Reconstruction and Development (EBRD) contributed $100mn in two tranches.

The investment bank extended $80mn under its €600mn Disaster Response Framework (DRF), part of a €1.5bn overall earthquake response recovery package, and $20mn was extended under its €600mn Turkey Women in Business II (TurWib II) programme.

Fitch Ratings has assigned a BB+ rating, one notch below investment grade, to the facility.

In parallel with local peers, Isbank, the fourth largest bank in Turkey with Turkish lira (TRY) 1.9 trillion ($68bn) of assets at end-June, has a B-/Stable (one notch below Turkey’s sovereign rating and six notches below investment grade) from Fitch Ratings and a B3/Stable (six notches below investment grade in line with Turkey’s sovereign rating) from Moody’s Investors Service.

In 2022, Isbank obtained a $127mn loan from the EBRD and a $100mn loan from the World Bank Group’s International Finance Corporation (IFC). Both loans have a maturity of five years and were extended under Isbank’s DPR programme.

Chart: Isbank’s loans from investment banks.

Chart: Isbank’s securitisation deals under its DPR programme.

The EBRD is the largest single-entity creditor and institutional investor in Turkey. Since 2009, it has invested €18bn in the country. Its outstanding portfolio valued at €7bn in Turkey is the largest portfolio the EBRD has in terms of the 38 economies in which the bank invests.

In 2022, the development bank invested a total of €1.6bn in Turkey. As a result, Turkey was the lender's top investment destination for the third year running.

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