Turkey's Denizbank has rung in the New Year with a $650 million, six-year deal backed by diversified payment rights.

Rated 'BBB+' by Fitch Ratings, the transaction priced at 350 basis points over one-month USD Libor, with the coupon stepping up to 525 basis points over in March of 2010.

The arranger of the transaction was parent company Dexia, which is understood to have purchased the deal as well. Bank officials were not reachable at press time.

During the first ten months of 2008, Denizbank processed roughly $20.3 billion of payment orders in dollars, euros and pounds. This figure marked a 17% rise from the volume seen in all of 2007.

The bulk of DPRs handled by Denizbank are expected to flow through the 12 depositary banks designated in the transaction, but in recent months their proportion of the total has dipped from the 82% average of the January-thru-October timeframe to a hair below 70%.

The U.S. is the single largest base country for the depositary banks, accounting for over 12% in the first three quarters of 2008 and all of 2007. The top six sectors receiving DPR flows accounted for about 73% of the total over the first three quarters of 2008.

The rating is anchored by Fitch's going concern assessment of Denizbank. "This is an evaluation of the "survivability" of both the bank's overall franchise and its DPR business after such a default," the agency said in a report.

(c) 2009 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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