One of the pioneers in the issuance of Asset Backed Securities (ABS) in Turkey, PASHA Bank continues to support the automotive industry. Having previously issued ABS, which was the first in the Turkish capital markets as its redemption obligations were covered by surety insurance, PASHA Bank broke new ground with this ABS issuance, which featured the first securities that included arrangements ordered according to payment priority.
PASHA Investment Bank, in cooperation with OMG Capital Advisors, made an ABS issuance of TRY 20,000,000 with a maturity of 734 days on behalf of Maygold Automotive A.Ş. This issuance was divided into Super Senior Tranche and Senior Tranche according to risk structure, and Super Senior Tranche provides its investors with a simple yield of 25 percent based on a monthly repayment schedule on a maturity of 24 months, while Senior Tranche offers a simple yield of 27 percent on a monthly repayment schedule with a maturity of 24 months. These arrangements, which are in order of seniority in accordance with international standards, will be used in redemptions starting from the most senior arrangement under the waterfall method of cash flow created by the asset pool and other collaterals.
Super Senior Tranche ABS was assigned “AA+ Long Term Rating” and Senior Tranche ABS was given “AA- Long-Term Rating” by JCR Eurasia in this issuance of TRY 20 million, which featured the first securities in Turkey that included arrangements ranked according to payment priority.
Investment funds, pension funds, insurance companies, corporate treasury departments and qualified individual investors were among the investors of the issue, which attracted a high level of institutional investor interest.
PASHA Bank has provided financial resources of TRY65 million to the automotive industry in the last year, including the 3rd ABS issuance of TRY 20 million that it made as the sourcing institution for Maygold Otomotiv A.Ş., which cooperates with 800 dealers.
With over 30 years of experience, Maygold offers technology solutions that enable individual and corporate customers' different needs to be combined under a single roof in the automotive industry.