Turkey’s Garanti Bank has closed a club deal backed by diversified payment rights (DPRs) to the tune of €250 million, according to a source close to the transaction. The paper is rated ‘A-’ by Fitch Ratings, the first time the agency has assessed DPR bonds from Garanti. In general, Moody’s Investors Service and Standard & Poor’s were far more active on the Turkish DPR front during the issuance boom of a few years ago, due to the fact that deals were overwhelmingly wrapped by monoline insurers.
The Garanti deal is split into three tranches, two of which went to multilaterals, a likely sign that Turkish originators and market investors are still having trouble agreeing on pricing since the crisis erupted. The European Investment Bank (EIB) and European Bank of Reconstruction and Development (EBRD) each took a €75 million slice with a 12-year final. WestLB, the arranger, underwrote the rest, a €100 million tranche maturing in five years. Pricing was undisclosed.