PASHA Bank, a pioneer in Asset-Backed Securities (ABS) issuances, has so far provided a total resource of TRY 2.5 billion to the real sector, particularly in agriculture. With its first ABS issuance for the agricultural sector in 2024, PASHA Bank has generated a resource of TRY 165 million for Tarfin Tarım with an interest rate of TLREF + 600bps and an average maturity of 175 days.
Having reached an asset size of TRY 9 billion 910 million in 2023, PASHA Bank has quickly become one of Türkiye's strongest investment banks within just nine years. In the first quarter of 2024, PASHA Bank increased its asset size by 63 percent, its equity by 65 percent, and its cash loan size by 55 percent compared to the same period of the previous year, and has provided a total of TRY 2.5 billion to the real sector since 2020 with its alternative investment instrument ABS. Continuing to provide resources to the real sector, PASHA Bank recently created a digital channel in Türkiye for the first time, allowing non-client qualified investors to participate in issuances through its website. With its first ABS issuance for the agricultural sector in 2024, PASHA Bank has generated a resource of TRY 165 million for Tarfin Tarım with an interest rate of TLREF + 600bps and an average maturity of 175 days.
The issuance, which has a Turk Rating TR A1 Short-Term National Rating, “signifying the strongest debt repayment capability”, is the 4th issuance of the 2023-2024 agricultural season. The issuance, enhanced by Tarfin's additional collateral rate of 10% and a risk margin of 5%, provides investors with an additional 15% security, conducted with the consultancy of OMG Capital.
PASHA Bank Continues to Support the Real Sector
PASHA Bank's General Manager, H. Cenk Eynehan, commented on the issuance of ABS, stating, "We expect the ABS product to develop and its transaction volumes to increase rapidly, just as it has in countries with developed capital markets. At PASHA Bank, we will continue to support the real sector and contribute to the growth of the Turkish economy."
Tarfin Tarım A.Ş. offers competitive pricing and payment terms that are favorable to the cash flows of farmers, selling fertilizers, seeds, feed, and similar agricultural inputs through 1,196 sales points to farmers in 80 provinces and 13,024 villages.