One of the pioneers of Asset Backed Securities (ABS) Issuance in Turkey, PASHA Bank has realized the last ABS issuance of the year for the agricultural sector. PASHA Bank has provided a support totaling TRY 320 million since 2020, with the issuance of ABS worth TRY 50 million.
PASHABank and OMG Capital Advisors have realized an ABS issuance of TRY 50 million with an average maturity of 277 days to be offered to qualified investors on behalf of Tarfin Tarım A.Ş.. Offering 25 percent annual simple interest income payable in three installments, the ABS has been rated in the "Highly Investable" category by JCR Eurasia and has a "AA-" credit rating.
ABS issuances, which are important for the development of the real sector and increase in employment, are being realized under the leadership of PASHA Bank among investment banks. PASHA Bank, which has been supporting the agricultural sector since 2020, has provided a funding resources of TRY 320 million since 2020 with today's issuance. Bringing capital market players together with ABS, which has been on the rise as a reliable financial instrument in recent years, PASHABank contributes to the development of the agricultural sector, while offering an investment alternative with anattractive yield.
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.
Since the beginning of 2020, the agricultural input needs of approximately 4,000 farmers have been funded from the capital markets. These issuances to the agricultural sector 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 Tarım A.Ş. offers fertilizers, seeds, feed and similar agricultural inputs to farmers in 75 provinces and 7,395 villages at 746 sales points with competitive prices and maturity opportunities suitable for farmers' cash flows.