PASHA Bank’s first Asset-Backed Security (ABS) issue of the year is offered to the agricultural sector

 
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PASHA Bank is a pioneer in issuing asset-backed security (ABS) in Turkey, providing a total of 296 million financial support to the agricultural and automotive sectors in the year 2021. PASHA Bank’s first ABS issue of the year 2022 is offered to the agricultural sector. This 100 million TL financial support stands out with its AA JCR long-term national rating, 28 percent accounting rate of return, and 199-day average maturity.

Recommending ABS to the capital market players as a reliable financial instrument that is on the rise, PASHA Bank does, on the one hand, contribute to the development of the agricultural and automotive sector and, on the other, offer lucrative returns to the investors. From 2020, the year ABS had first been issued, until today, PASHA Bank provided a total amount of 385 million TL financial support to both of these sectors, and in 2021 issued 296 million TL worth ABS. 

Exceeding the year 2021 targets and growing by 63 percent in comparison to the year 2020, reaching an asset size of 3 billion 563 million TL, in 2022, PASHA Bank continues to support the agricultural sector.  

PASHA Bank and OMG Capital Advisors did, on behalf of Tarfin Tarım A.S., issue 100 million TL worth ABS with an average maturity of 199 days, to be offered to qualified investors. At 28 percent annual simple interest in three tranches, it is rated by JCR Eurasia “AA-“under the category of “highly investible.”

The futures agricultural inputs to a geographically and product-wise diversified producer portfolio were mostly used for fertilizers and seeds. The receivables are from the district of Siverek of the province of Sanliurfa, the district of Sorgun of Yozgat, and the Central District of Amasya.

The agricultural input needs of nearly 4,000 farmers have, since the beginning of the year 2020, been funded by the capital markets. These issues to the agricultural sector enabled Tarfin to extend support to more farmers and, at the same time, underscored the critical role that the innovative capital market instruments like the ABS play in financing the real sector.

Tafrin Tarım A.S. offers fertilizer, animal feed, and similar agricultural inputs at 880 stores to the farmers in 80 provinces and 7,600 villages at competitive prices and favorable maturity terms.

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