Westdeutsche Landesbank (WestLB) recently launched a E192 million ($200 million) worker remittance, future-flow securitization for Halkbank, one of Turkey's largest state-owned banks. The deal is backed by present and future payments including remittances, bank checks and export payment orders deposited into 16 of Halkbank's correspondent offices in Europe and North America but it is not a normal asset-backed bond, issued via the capital markets. Instead, WestLB has structured the deal as a securitized syndicated loan.

"On the asset side, we've done everything we would normally do on an asset-backed deal but this uses a syndicated loan rather than a bond," said David McCaig, a director in WestLB's asset-backed team. "We felt that a syndicated loan would provide the optimal funding source given the current weakness in the capital markets for emerging markets."

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