VAKIFBANK
ANNUAL REPORT 2015
58
TURKEY’S LEADING BANK
Always a pioneer in international banking in
Turkey, VakıfBank has remained in 2015 the
most active Turkish bank in global markets, by
issuing the first ever Basel III-compliant Tier II
bond in Turkey, issuing private placements as
part of its global medium term note program, as
well as securing syndication loans, securitization
loans and long and medium term financing at
affordable terms from diverse resources.
BROADER INVESTOR BASE
While tapping new funding sources in different
currencies at various maturities, VakıfBank also
expanded its investor base with new structured
finance products which it pioneers. By increasing
the maturity of its sources in this manner,
VakıfBank remains an important contributor to
the Turkish economy and a dedicated supporter
of the real economy through long-term and
cost-effective facilities.
TURKEY’S FIRST BASEL III-COMPLIANT
SUBORDINATED LOAN ISSUE
As the first bank to establish the Global
Medium Term Notes (GMTN) program in Turkey,
VakıfBank also issued the first ever euro-
denominated Eurobond of Turkey apart from the
sovereign within the scope of GMTN program
which breaks a new ground in 2014. In a
ground-breaking achievement, the Bank became
the first Turkish bank to issue Basel III-compliant
subordinated notes in international capital
markets in 2015. The issuance, amounting USD
500 million with a maturity date of 3 February
2025 and having a call option on 3 February
2020, priced at a yield of 6.95% and a coupon
rate of 6.875%.
ONE OF THE LARGEST ISSUERS OF
PRIVATE PLACEMENTS
As part of its medium term note program,
the Bank performed a total of 198 private
placements with 16 different banks. The
transactions was carried out in different
currencies (US dollars, euros and Swiss
francs) and maturities of three months,
six months, one year and two years with a
total amount of USD 4.25 billion. In 2015,
a total of 92 private placements helped
raise USD 1.56 billion in funds, making
VakıfBank the second largest Turkish bank
in transactions.
SYNDICATION LOANS
In april 2015, VakıfBank secured a one-year
USD 1 billion equivalent syndicated loan
consisting two tranches of USD 204 million
and EUR 763 million with the participation of
35 banks. The total cost of the loan secured
for the purpose of foreign trade financing
was Libor/Euribor + 0.80%. In the second
half of 2015, with the participation of 30
banks, the Bank secured another one-year
syndicated loan facility of USD 938 million
structured in two tranches of USD 168.5
million and EUR 679.5 million with a total
cost of Libor/Euribor + 0.75%. With these
transactions, the Bank obtained a total of
USD 1.94 billion in syndicated loans in 2015.
While tapping new funding sources in different
currencies at various maturities, VakıfBank also
expanded its investor base with new structured
finance products which it pioneers.
REVIEW OF OPERATIONS IN 2015
FOREIGN TRADE AND
CORRESPONDENT BANKING
THE AWARD-WINNING BANK
WITH ITS SUCCESS IN BOND ISSUANCE
