VKF_FRAE_2017

401 VakıfBank Annual Report 2017 CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES EXPLANATIONS AND NOTES RELATED TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) II. INFORMATION ON THE PARENT BANK’S RATING GIVEN BY INTERNATIONAL CREDIT RATING INSTITUTIONS February 1, 2018 (*) Fitch Ratings Long Term Foreign Currency BB+ Short Term Foreign Currency B Foreign Currency Outlook Stable Long Term Local Currency BBB- Short Term Local Currency F3 Local Currency Outlook Stable National Long Term AAA (tur) National Outlook Stable Support 3 Support Rating Floor BB+ Viability Note bb+ February 2, 2018 (*) Moody’s Investors’ Service Baseline Credit Assessment ba2 Local Currency Deposit Rating Ba1/NP Local Currency Outlook Negative Foreign Currency Deposit Rating Ba2/NP Foreign Currency Outlook Negative December 12, 2017 (*) Standard&Poors Foreign Currency Counterparty Credit Rating BB/B Foreign Currency Outlook Negative Local Currency Counterparty Credit Rating BB/B Local Currency Outlook Negative Turkey National Scale trAA- / trA-1 (*) Dates represent last report dates.  III. SIGNIFICANT EVENTS AND MATTERS SUBSEQUENT TO BALANCE SHEET DATE THAT ARE NOT RESULTED The Parent Bank has issued and offered to public a Vakıfbank bond, which has a value date of January 26, 2018, with nominal value of 400,000,000 (Full TL), with 154 days maturity, and maturity date of June 29, 2018, on January 22-23-24, 2018, and as a result of the realized issue, The Vakıfbank bond with the ISIN Code TRFVKFB61828, is determined with 201,773,448 (Full TL) nominal value, with 154 days maturity and maturity date of June 29, 2018, 13.8236% annual compound interest, 13.3082% simple interest and TL 94,684 issue price. Book-building process in relation to issuance of the Eurobond has been completed by the Parent Bank. Coupon rate has been set at 5.75% with a yield of 5.85% in respect of USD 650 million fixed rate notes with semi-annual interest payment, having a maturity on January 30, 2023 with a term of 5 years. The Parent Bank has issued and offered to public a Vakıfbank bond, which has a value date of February 23, 2018, with nominal value of TL 200 million (Full TL), with 126 days maturity, and maturity date of June 29, 2018, on February 19-20-21, 2018, and as a result of the realized issue, The Vakıfbank bond with the ISIN Code TRFVKFB61836, is determined with 267,253,694 (Full TL) nominal value, with 126 days maturity and maturity date of June 29, 2018, 13.7488% annual compound interest, 13.1730% simple interest and TL 95,650 issue price. The Parent Bank has issued and offered to public a Vakıfbank bond, which has a value date of February 23, 2018, with nominal value of TL 100 million (Full TL), with 210 days maturity, and maturity date of September 21, 2018, on February 19-20-21, 2018, and as a result of the realized issue, The Vakıfbank bond with the ISIN Code TRFVKFB91817, is determined with 46,272,511 (Full TL) nominal value, with 210 days maturity and maturity date of September 21, 2018, 14.0756% annual compound interest, 13.6809% simple interest and TL 92,703 issue price.