Garanti BBVA's New Product for Capital Markets: Asset-Backed Securities
Garanti BBVA's New Product for Capital Markets: Asset-Backed Securities
Garanti BBVA has successfully completed the issuance of Asset-Backed Securities (ABS), offering qualified investors a new alternative investment instrument while implementing an innovative solution that enhances the Bank’s flexibility in asset and liability management.
As part of its ongoing efforts to expand product diversity in capital markets, Garanti BBVA finalized the ABS issuance, strengthening its balance sheet management capabilities and providing investors with an additional structured investment option. The ABS structure, which is widely used in both domestic and international markets, stands out as a modern financing and credit risk management tool that contributes to the deepening of capital markets.
Within the scope of the transaction, loans recorded on Garanti BBVA’s balance sheet were transferred to the TMKS Garanti BBVA First Asset Financing Fund, established under the umbrella of the Turkey Securitization Company (TMKŞ). These assets were subsequently securitized and offered to investors.
Strong Investor Demand for the ABS Issuance
The ABS issuance created a new source of liquidity for Garanti BBVA while supporting the Bank’s capital adequacy ratios. The transaction attracted demand exceeding initial expectations, reflecting strong investor interest.
Garanti BBVA CEO Mahmut Akten commented on the transaction: "We prioritize offering our customers diversified investment channels and financing solutions, as well as introducing innovative products that contribute to the development of capital markets. The Asset-Backed Securities issuance represents a significant step that strengthens our asset and liability management while enabling us to offer our investors a secured and structured product. The strong demand we received also demonstrates that this transaction addresses a clear market need. We will continue to create value through innovative financing solutions in the period ahead."
TMKŞ General Manager Haldun Nigiz also shared his remarks, stating: "As Türkiye Menkul Kıymetleştirme Şirketi, we are pleased to have contributed to the realization of the Asset-Backed Securities (ABS) issuance, in which Garanti BBVA acted as the originator, from the establishment of the transaction infrastructure through to the securitization process. Such issuances clearly demonstrate the potential of ABS structures in balance sheet management and alternative financing, while also making a meaningful contribution to product diversification in our capital markets. Going forward, we will continue to bring innovative financing solutions to capital markets in collaboration with banks and financial institutions."