Contributing to the development of trade between Turkey-Azerbaijan-Georgia, providing resources and guidance to businesses investing in the region, and serving with investment banking and corporate banking products, PASHA Bank realized the 2nd Asset Backed Securities Issuance (ABS) for agriculture during the year. PASHA Bank provided a total of TRY 96 million in support to agriculture in the first half of 2021, and a total of TRY 170 million in 2020/2021, through the issuance of ABS of TRY 50 million with an average maturity of 135 days.
PASHA Bank and OMG Capital Advisors have realized, on behalf of Tarfin Tarım A.Ş., the issuance of an ABS of TRY 50 million with an average maturity of 135 days, to be offered to qualified investors. Offering an annual simple interest yield of 22.00 percent payable in 6 installments, the ABS has been assessed in the "Highly Investible" category by JCR Eurasia and has a "AA-" credit rating.
The ABS, which is important for the development of the real sector and the increase in employment, takes place under the leadership of PASHA Bank among investment banks. In this regard, PASHA Bank had recently organized a meeting on “Capital Markets and Asset-Based Securities as a Source of Financing ” for the first time in the financial sector with the participation of Prof. Dr. Göksel Aşan, the President of the Presidential Finance Office, and Ali Erdurmuş, the Deputy Chairman of the Capital Markets Board. Having supported agriculture since 2020, PASHA Bank thus provided a total of TRY 96 million in the first half of 2021 and a total of TRY 136 million in 2020/2021.
Investment funds, pension funds, insurance companies, corporate treasury departments and qualified individual investors were among the investors of the issuance, which was completed with a demand that exceeded the issuance amount despite the pandemic process.
The agricultural input needs of approximately 6,600 farmers were funded on the capital markets. This issuance not only enabled Tarfin to support more farmers, but also showed once again the critical role played by innovative capital market instruments such as ABS in financing the real sector.
TARFIN sells fertilizers, seeds, feed and similar agricultural inputs to more than 21,000 farmers engaged in production in 6,080 villages located in 65 provinces through 795 sales points at competitive prices and with maturity opportunities suitable for the cash flows of the farmers.