PASHA Bank contributed to the growth of trade between Turkey-Azerbaijan-Georgia and, since the year 2020, has issued 165 million TL worth asset-backed securities (ABS) for the agriculture and automotive sectors. Having made a name for giving support to the real sector, it held the “Capital Markets and Asset-Backed Securities as Source of Financing” meeting in Turkey on Thursday, 27 May 2021, in cooperation with OMG Capital Advisors. for the first time to increase the recognition of the ABS. At the meeting, held as a webinar, the opening speeches were made by H. Cenk Eynehan, the General Manager of PASHA Bank; Prof. Dr. Göksel Aşan, the President of the Finance Office of the Presidency of the Republic of Turkey (R.T.); Ali Erdurmuş, the Deputy President of the Capital Markets Board (CMB) and Murat Gulkan, the General Manager of OMG Capital Advisors.
Serving to contribute to the growth of trade between Turkey-Azerbaijan-Georgia, to create resources for and provide guidance to the businesses that make investments in the region, to offer investment banking and corporate banking products, PASHA Bank completed its 6th year of operations in Turkey. On 27 May, Thursday, it did, for the first time held the “Capital Markets and Asset-Backed Securities as Sources of Financing” webinar in Turkey, in cooperation with OMG Capital Advisors. Following the opening speeches of H. Cenk Eynehan, the General Manager of PASHA Bank; Prof. Dr. Göksel Aşan, the President of the Finance Office of the Presidency of the R.T.; Ali Erdurmuş, the Deputy President of the Capital Markets Board and Murat Gulkan, the webinar continued in two sessions.
H. Cenk Eynehan, the General Manager of PASHA Bank, made the first opening speech of the webinar and said as follows: “Since the day our Bank had been founded, our mission had been ‘to contribute to the strengthening of the customers and to be a cross-borders bank’. PASHA Bank’s priority had always been to support the trade between Turkey, Azerbaijan, and Georgia, and to contribute to our country’s economy and it shall continue to be so. In the year 2020, throughout which the pandemic prevailed, we always took sides with the real sector by increasing the volume of the loans, and we continue to do the same this year as well. In the year 2017, we continued to follow the path we had taken in the year 2016 by issuing PASHA Bank finance bonds domestically, by issuing Dollar and Euro denominated bonds in Azerbaijan, thus providing 87 million dollars long-term finance from Azerbaijan capital markets. We had transferred these funds to the projects in our country and shall continue to do so. While trying to create resources for itself by using the capital market instruments, in the year 2020, our Bank created Asset Finance Funds to provide brokerage services to the customers that have high-quality asset pools. We created capital market sources for our customers that operate in the agriculture and automotive industries, helping them export Asset-Based Securities from last year till now, at the total value of 165 million TL. We aim to provide 100 million TL worth additional source to the real sector by exporting Asset-Based Securities as planned, also in the coming months and until the end of the year.”
Murat Gülkan, the General Manager of OMG Capital Advisors, made this statement: “In the last year, we witnessed the emergence of the ABS’ as a brand-new product. This is yet the beginning. The foremost advantage of the financial center status of Istanbul is its well-trained workforce that will create this ecosystem in Turkey.”
We support the ABS efforts
After Murat Gülkan, the General Manager of OMG Capital Advisors, Ali Erdurmuş, the Deputy President of the Capital Markets Board, gave the following information about the operations of the Capital Markets Board:
“Regarding the financing systems, the focus is directed on these two basic models: Equity financing and long-term financing by using debt instruments. In the last 10 years, long-term debt instruments have increased. Among these, the ABS is a new alternative to the traditional financing system and gives confidence. Although the first examples had been introduced by banks in the 90’s, the ABS were actually provided by the CMB in the year 2006 as per the housing finance law. After the 2008 crisis, implementation of these laws took time. In addition to the macroeconomic market conditions, the market conditions and the market stakeholders should be prepared for this. After Lehman Brothers’ bankruptcy, nobody called us for 3 to 4 years. Yet, we are interested in the developments in this field because funds can be obtained not only by public offers but also by borrowing. Looking into the past 4- or 5-years’ data, we see that the issues by real sector, like those of the OMG and PASHA Bank, are not many. Like the Economic Reforms Package, we are getting prepared to put the project-based securities and the project-based funding model into practice. Securitization and indebting as well emerged in the last 10 years. We do attach importance to the ABS and the other similar instruments for the development of the real sector and increasing employment.”
In his opening speech, Prof. Dr. Göksel Aşan, the President of the Finance Office of the Presidency of the R.T. stated as follows: “When looked at the global scale, today the link between the financial sector and the real sector has been severed. In an environment where the cost of funding is almost zero, the real sector investments are at historically low levels. In the coming period, the world will be in search of a new financial system. Sustainability, responsible finance, green finance concepts are all outputs of the small efforts by the members of the finance system, and in the coming days, they will grow and become more precious. We too will have to make serious progress in these fields. The bond between the real sector and the financial sector must be strong. In our work with the CMB, we are trying to achieve this.”
Following the opening speeches, two more panels were held. One that was about ABS as a source of funding, and titled “Operational Efficiency and Resource Diversity”, was moderated by Economist Ali Ağaoğlu, and participated by Adv. Cansu Yazkan Erkal, Member of the Board of Directors of Maygold Otomotiv; Kerem Aksoy, Business Development Director of Borsa Istanbul; Mehmet Memecan, Chairperson of the Board of Director of Tarfin Tarım , and Sinan Dallı Türkay Group CEO and Member of the Board of Director of Nart Sigorta. The other panel, titled “Investment Options and Risk Elements” was moderated by Umurcan Gago, PwC Partner, and participated by Prof. Dr. Çoşkun Küçüközmen, Member of the Faculty of Management of the İzmir University of Economy; Emrah Ayrancı, Deputy General Manager of Ak Portföy; Erhan Topaç, Member of the Board of Directors of the Turkish Capital Markets Association and the Chairperson of the Board of Directors of Gedik Yatirim Holding, and Mustafa Selcuk, General Manager of Polsan.