Dresdner Kleinwort Wasserstein has launched another private placement for Turkey's Garanti Bank last week, which is seeking 300 million ($373 million), sources said.
While the future flows deal is structured as a regulation S, it will be shown to a select group of U.S. investors, an industry source said.
The transaction collateralizes all current and future diversified payment rights by bank transfers from abroad, and is guaranteed by MBIA, which is reprising a role it played for Garanti in May of last year in a $300 million deal that DrKW also led, a source familiar with the transaction said. The maturity was expected to be in the five-year final/four-year average life ballpark at press time and the deal is slated to price this week, according to industry sources. No price talk was available at press time.
Standard & Poor's gave the transaction a AAA', citing the guaranty provided by MBIA. Factors informing the underlying rating of BBB-' include the size and systemic importance of the bank, the strategic importance of the payment order business to Garanti and the solid record of DPR volume growth, according to a presale report.
S&P rates the bank BB-', citing the balance between the still-risky financial and economic environment in Turkey against the bank's strong commercial position, good management, and improving financial profile and performance, according to a report.
Previous deals
The $300 million transaction that Dresdner arranged for Garanti last May priced at three-month Libor plus 24 basis points with an eight-year final/5.5-year average life, according to sources. Moody's Investors Service and Standard & Poor's rated that deal AAA'.
Garanti is Turkey's third largest private bank. It provides retail, corporate and commercial banking services from about 350 domestic branches and operates branches also in Germany, Luxembourg, Malta, Romania and Russia. In addition to traditional deposit products, Garanti Bank provides leasing, insurance, factoring, securities and portfolio management services.
It 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 of Garanti's ordinary shares from Dogus Holding for $1.8 billion.
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