PASHA_BANK_ANNUAL REPORT 2023

2023 Headlines JCR has upgraded PASHA Bank’s credit rating to A+(tr). PASHA Bank, solidifying its position among Türkiye’s strongest investment banks, has received international recognition for its success. The credit rating upgrade by the international credit rating agency JCR underscores PASHA Bank’s robust banking image following a successful year in 2023. Accordingly, JCR has elevated PASHA Bank’s Long-Term National Institution Credit Rating from “A (tr)” to “A+ (tr)” level. The upgrade in credit rating takes into account PASHA Bank’s strong capital adequacy ratios, diversified funding structure facilitated by bond issuances providing financial flexibility, country-specific advantages encouraging investment in activities of investment banks, high level of compliance with corporate governance practices, continuity of the established risk management organization, and the downward trend in the ratio non-performing loans, supporting the quality of its assets. PASHA Bank continued its successful asset-backed security issuances without slowing down. As one of the pioneers in Asset-Backed Securities issuances, which are crucial for the development of the real sector and the increase in employment, PASHA Bank completed an issuance of TL 798 million for Tarfin Agriculture in 2023. Additionally, a total of TL 50 million in issuance was made for Platin Kimya, operating in the field of agricultural chemicals. Since 2020, PASHA Bank has been providing support to the agriculture sector, and with these issuances, it has secured approximately TL 2 billion in funding for this sector since 2020. International bond issuance from PASHA Bank Supporting cross-border investments with its mission of being a financial bridge at the triangle of Türkiye, Azerbaijan and Georgia, PASHA Bank realized a bond issue of USD 11,550,000 at the securities market of Azerbaijan. As the first institution to issue a bond in a currency other than its own currency at Azerbaijan markets, PASHA Bank realized a total of nine foreign currency bond issuances since 2017, eight of them in USD and one in Euro. Thus, the Bank provided approximately USD 137 million of funds up to now. PASHA Bank made a pioneering move in the Turkish capital markets with the issuance of asset-backed security indexed to wheat price The “PASHA Investment Bank A.Ş. Tarfin Third Asset Finance Fund,” which took over Tarfin Agriculture’s forward sales to farmers, not only contributes to the development of the agriculture sector but also offers an attractive investment alternative to qualified investors with this issuance transaction. This transaction holds significant importance as the first wheat price- indexed asset backed security issuance in the Turkish capital markets. Farmers’ receivables approved by Tarfin’s developed agricultural risk scoring model form the collateral pool of this fund. Asset-backed security issuances, which transform agricultural receivables into a structured investment 10 PASHA Bank 2023 Annual Report