Turkey’s debut covered bond consists of three tranches pricing between 200 basis points and 250 basis points over Euribor, a spread that will be swapped into a Turkish rate for originator Sekerbank at the time of the closing, said Huib-Jan de Ruijter, director of financial markets at Dutch development bank the FMO, one of the investors in the deal.
The size of the transaction, which is secured by SME loans, is TL230 million ($135 million). The FMO will take a €25-million ($16 million) equivalent tranche; Unicredit, the arranger, will take €50 million; and Washington-based multilateral the International Finance Corp. will invest $25 million. The final maturity is 2019 and expected maturity 2016 for the FMO and IFC tranches. Unicredit’s expected maturity is a bit shorter, Ruijter said.