Sekerbank speaks out on Turkey’s covered bond debut

Author: Gemma Varriale | Published: 16 Aug 2011

Sekerbank is set to close the world’s first small-and-medium enterprise (SME) backed covered bond and Turkey’s first covered bond. The hybrid incorporates asset backed security (ABS) features.

It is the first time that a programme has combined structured finance technology within a covered bond legal framework - Turkey's Capital Markets Law and the Communiqué on Asset-Guaranteed Securities.

"This is a new line of funding capability for Turkish banks, both domestically and internationally, and it will help improve the profile of the liability side of Turkish banks’ balance sheets," said Zeki Onder, executive vice president of financial institutions and international funding at Sekerbank.

The programme, known as the Sekerbank asset-guaranteed bonds, is worth €250m (£217m). The bonds constitute senior, full...