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