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VAKIFBANK
ANNUAL REPORT 2014
49
FOREIGN TRADE AND CORRESPONDENT
BANKING
MOST ACTIVE TURKISH BANK IN INTERNATIONAL
MARKETS
VakıfBank has always been one of the leading Turkish
banks in international banking. The Bank has maintained
its position as the most active Turkish bank in international
markets in 2014 through its Eurobond and private
placement issuances under the Global Medium-Term
Notes program along with syndicated loans, securitization
loans, and other long-term and low-cost facilities from a
variety of sources.
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. 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 sector through long-
term and cost-effective facilities.
TURKEY’S FIRST EVER EURO-DENOMINATED
EUROBOND ISSUANCE
As the first bank to establish the Global Medium Term
Notes (GMTN) program in Turkey, VakıfBank also issued
the first ever euro-denominated corporate Eurobond of
Turkey in a five-year,
€
500 million placement with a yield
of 3.65% and coupon rate of 3.5% as part of the GMTN
program. The issuance drew a record investor demand
of
€
5.3 billion. It is also a record in terms of the number
of investors submitting bids: more than 450 institutional
investors including central banks. Strong investor demand
lowered the yield by 35 basis points, to 3.65%, from the
initial pricing yield of 4.00% with a 3.50% coupon rate.
STRONG INTEREST FROM ASIAN INVESTORS FOR
PRIVATE PLACEMENT BOND ISSUANCES
The Bank issued 106 private placements to 12 separate
banks since June 2013 as part of the Global Medium-Term
Notes program. These private placement transactions
amounting to an equivalent of US$ 2.68 million were in
various currencies (US dollars, euros and Swiss francs) and
maturities (three months, six months, one year and two
years). The vast majority of these placements were made
to Asian investors who are investing in Turkey for the first
time.
100% ROLLOVER OF SYNDICATED LOANS
In April 2014, VakıfBank secured a one-year US$ 995
million syndicated loan consisting two tranches of US$
270.5 million and
€
525 million with the participation
of 35 banks. The total cost of the loan secured for the
purpose of foreign trade financing was Libor/Euribor +
0.90%. In the second half of 2014, with the participation
of 26 banks, the Bank secured another one-year
syndicated loan facility of US$ 850 million structured in
two tranches of US$ 168.5 million and
€
528.75 million
with a total cost of Libor/Euribor + 0.90%. With these
transactions, the Bank obtained a total of US$ 1.85 billion
in syndicated loans in 2014.
1,396.6
US$ MILLION
VakıfBank’s total
securitization loan
portfolio stands at
US$1,396.6 million.
SECURITIZATION LOAN IN SEVEN TRANCHES
VakıfBank obtained a US$ 928.6 million securitization
loan in euro and US dollar currencies backed by future
cash flows from treasury financing transaction as well as
other required transactions within the Diversified Payment
Rights securitization program. The loan facility consists
of seven separate tranches, US$ 500 million of which
has a maturity of five years and US$ 428.6 million with a
maturity of seven years.
Some 75% of the tranche amounting to US$ 125
million, which was obtained from European Bank for
Reconstruction and Development (EBRD), will be used
for the Bank’s medium-term lending, including loans that
aim to support agribusiness operations of SMEs within the
Turkey Agribusiness Financing Facility (TurAFF). Meanwhile
the remaining 25% of the tranche will be used for
women-led businesses as part of the Advice and Finance
for Women in Business program.
Loans obtained from other banks will be used to fund
project loans, as well as VakıfBank’s medium and long
term foreign-currency loans. As of year-end, VakıfBank’s
total securitization loan portfolio stood at US$ 1,396.6
million. The Bank contributes to Turkey’s sustainable
growth by making its securitization loans with maturities
up to 12 years available for the long-term financing of the
real economy.
SUPPORTING THE REAL SECTOR WITH BILATERAL
AGREEMENTS
VakıfBank continues to collaborate with the European
Investment Bank (EIB), the World Bank and the European
Bank for Reconstruction and Development (EBRD) to
provide long-term, low-cost funding to the real economy.
In 2013, the SME Energy Efficiency Project agreement
was signed with the World Bank. Under the project, US$
67 million was allocated to VakıfBank. The first tranche
amounting to US$ 15 million was disbursed to the Bank
in 2014 to fund the energy efficiency projects of SMEs
operating in Turkey.
An additional limit of
€
25 million to
€
50 million granted
from the European Investment Bank within the Greater
Anatolia Guarantee Facility (GAGF-II) project in 2011 was
disbursed in 2013. The
€
25 million additional limit was
used exclusively to fund SMEs active in regions prioritized
for development. The first tranche of the
€
50 million
(GAGF-II) loan in the amount of
€
25 million was released
to the Bank as of year-end 2014. In 2013, the European
Investment Bank (EIB) also allocated
€
200 million to the
Bank to be lent to municipalities and their enterprises
in Turkey. The first tranche, amounting to a US$ 67.8
million (
€
50 million) facility, was disbursed to the Bank in
2014 and is available to finance infrastructure investments
of municipalities and their enterprises in Turkey.