One of the most reliable suppliers of future flow volumes last year is back. After hitting up investors for over $1.4 billion in 2005, Turkiye Garanti Bankasi closed a 300 million transaction backed by diversified payment rights (DPRs) May 9 via Dresdner Kleinwort Wasserstein. Pricing came to 17 basis points over three-month Euribor for the five-year final transaction, according to a source familiar with the deal. Moody's Investors Service and Standard & Poor's rated the deal triple-A on the strength of a wrap provided by MBIA.

The underlying ratings are Baa2' and BBB-', respectively. Two months ago, Moody's upgraded the unwrapped and underlying ratings of deals backed by DPRs that have Garantibank and its peers Turkiye Is Bankasi and Akbank as originators. Moody's and S&P rate Garanti B1'and BB-' on a foreign currency, unsecured basis.

DPRs refer to electronic money that flows through the bank for activities like export payments and worker remittances. Garanti's DPR business has a strong exposure to Turkey's export sector and tends to follow the rhythms of the overall Turkish economy, according to Moody's. More than 26,000 exporters use Garanti to receive payments from abroad.

Garanti posted a 57% rise in net profit in 2005, to $532.6 million and a 38% increase in assets to $24.4 billion. In December 2005, General Electric Co. acquired a 25.5% stake in Garanti from Dogus Holding for $1.8 billion.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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