As one of the pioneers of Asset-Backed Securities Issuance (VDMK) in Turkey, PASHA Bank continues to support the agricultural sector. Having provided a total of TRY170 million support for the agricultural season since 2020, PASHA Bank has issued an additional TRY50 million of VDMK, thus providing the sector with a resource of TRY220 million. PASHA Bank aims to provide an additional TRY100 million support to the agricultural sector by the end of the year.
PASHA Bank and OMG Capital Advisors have issued TRY50 million worth of VDMK with an average maturity of 345 days to be presented to qualified investors on behalf of Tarfin Tarım A.Ş. Offering an annual simple interest yield of 23.50 percent payable in 4 installments, VDMK has been assessed in the "Highly Investable" category by JCR Eurasia and has a credit rating of "AA-".
VDMK issuances, which are important for the development of the real sector and the increase in employment, are being carried out under the leadership of PASHA Bank among investment banks. Supporting agriculture since 2020, PASHA Bank has provided TRY220 million of support since 2020 with today's issuance. PASHA Bank aims to provide an additional support of TRY100 million by the end of the year.
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 4,350 farmers were funded from 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 VDMK in financing the real sector.