PASHA Bank, a pioneer in Asset-Backed Securities (ABS) issuances, facilitated the first ABS issuance of the year, focusing on the agriculture sector. The TRY 220 million issuance, conducted by Turkey Securitization Company (TSC) with advisory from OMG Capital Advisors, stands out with its 240-day maturity and an annual average simple yield rate of 52.13%.
Since its establishment, PASHA Bank has continued to deliver innovative solutions to meet investors’ financial needs while supporting the development of the real sector. By bringing ABS instruments to capital market players, PASHA Bank contributes to the growth of agriculture, automotive, chemical, and retail sectors, while offering attractive investment alternatives to investors. The TRY 220 million issuance, conducted by Turkey Securitization Company (TSC) with advisory from OMG Capital Advisors, stands out with its 240-day maturity and an annual average simple yield rate of 52.13%. This issuance by TSC’s Tarfin 1 Asset Financing Fund, which acquired Tarfin’s deferred sales to farmers, simultaneously supports the development of the agriculture sector and provides investors with a compelling return on investment. Through this ABS issuance, approximately 1,700 farmers’ agricultural input needs are being financed through capital markets. This issuance highlights the effective role of innovative capital market instruments like ABS in financing the agriculture sector. The ABS was rated “National Long-Term AA” by Saha Rating, categorizing it as “representing the highest credit quality” and at an investable level.
TSC, established on March 17, 2020, is Türkiye’s first centralized issuing institution, created to promote and develop securitization activities in the country. Tarfin operates through over 2,000 sales points located across 81 provinces and more than 15,000 villages, offering fertilizers, seeds, feed, and other agricultural inputs to farmers at competitive prices and with flexible payment terms aligned with farmers’ cash flow.