VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 487 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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) 9. Information on payables for assets held for resale and tangible assets related to discounted activities As of December 31, 2018, the Group has liabilities amounting to TL 1,546 related to non-current assets “held for sale” and discontinued operations. (December 31, 2017: None). 10. Information on subordinated loans The Parent Bank has issued bond having the secondary subordinated loan quality to be sold to non-resident natural and legal persons. The bond has been issued at the nominal value of US Dollar 500 million with the maturity of 10 years and 6.0% coupon rate. In addition to the bond issued on November 1, 2012, on December 3, 2012 the Parent Bank has realized second trance at nominal value of US Dollar 400 million, has the same due date and maturity of 10 years and 5.5% coupon rate. The Bank has issued secondary subordinated loan (Tier II bond) as at January 2015 which contains Basel-III criteria. In this context, the bond has been issued at the nominal value of US Dollar 500 million with the maturity date of February 3, 2025 and early call option date of February 3, 2020. The bond has fixed interest, 10 years and one day maturity, two times interest payment in a year with coupon rate of 6.875% and issue yield of 6.95%. In 2012, the Parent Bank carried out the sale of bond issued abroad with a maturity of 2022 maturities of USD 900 million. Regulations and amendments made within the scope of BRSA’s Regulation on Equities of Banks have made it possible to comply with Basel III regulations in the capital adequacy calculations of banks as contributions capital. In this context, the effect on the capital of the Bank which has issued Basel II compliant subordinated loan provisions issued in 2012 has decreased. In this context, the operational process of the swap transaction of bonds with a total nominal value of USD 228 million which issued abroad, with the new Basel III compliant conditions, was completed on February 13, 2017 and the redemption date of the bonds to be exchanged was determined as November 1, 2027, with a maturity of 10 years (recall option in 2022) and coupon rate as 8.00%. On September 18, 2017, the Parent Bank had issued a floating rated subordinated bond (secondary capital) for the qualified domestic institutional investor with nominal value of 525 million Turkish Liras, that has the maturity of 10 years, that is recallable in 5 years, and has quarterly coupon payments. On September 27, 2018, the Parent Bank had issued a fixed rate subordinated bond (secondary capital) with nominal value of 4,994 million Turkish Liras that is undated and recallable at the end of 5 years and has semiannual coupon payments. Stated bonds’ total balance sheet value is TL 13,022,023 as of December 31, 2018 (December 31, 2017: TL 5,917,137). Current Period - 31 Aralık 2018 TL FC Debt instruments to be included in the additional capital calculation 5,138,704 - Subordinated Loans - - Subordinated Debt Instruments 5,138,704 - Debt instruments to be included in the additional capital calculation 529,417 7,353,902 Subordinated Loans - - Subordinated Debt Instruments 529,417 7,353,902 Total 5,668,121 7,353,902