Having issued 300 million TL total worth of ABS (asset-based security) in the first five-month period of the year 2022 for the agricultural sector, PASHA Bank also contributes to the automotive sector by initially issuing 20 million TL worth of ABS. PASHA Bank is one of the pioneers of ABS in Turkey and is planning to issue 55 million TL worth more ABS for the automotive sector.
ABS issues that have lately come to the forefront as a new financing technique stands out with their secure structure, diversified portfolio, and high yield options. PASHA Bank is a pioneer in ABS issues, which plays a significant role in the recovery of the real economy and job growth, and since 2020, the year ABSs had first been issued, has provided a total of 705 million TL worth of financial support for the agricultural and automotive sectors.
PASHA Bank targets to issue 500 million TL worth of ABS for the agriculture and automotive sectors and chemical industry for the year 2022, and in the first five-month period of the year, issued 300 million TL worth of ABS to the agricultural sector. It targets to issue 75 million TL worth of ABS for the automotive sector until the end of the year and has, in cooperation with the OMG Capital, already issued the first party of 20 million TL under three different risk categories, namely Super Senior Tranche, Senior Tranche, and Junior Tranche.
The JCR Eurasia rating of the Super Senior Tranche ABS is “long-term AA+,” which is a grade lesser then the highest rating and nine grades over the “investible” level, whereas the rating of the Senior Tranche ABS is “long-term AA-.“ A Super Senior Tranche ABS offers 32.50 accounting rate of return for 24-month maturity and a monthly repayment schedule, while a Senior Tranche offers 34.50 accounting rate of return for 24-month maturity.
The source entity of the ABS issues is the MAYGOLD Group of Companies, which consists of 5 operating companies engaged in mainly automotive, fuel, insurance, jewelry, and foreign currency businesses.