DealsBrief
Garanti BBVA raises €400 million of DPR funding, its first since 2019
The EBRD is investing €100 million in notes under the programme, split between loans to women-led small firms and to businesses run by people under 35.
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Garanti BBVA has raised €400 million of diversified payment rights financing on international markets, its first such transaction since 2019, with maturities of 1,907 and 2,547 days, the Turkish lender's parent group said on 27 October.
The structure is backed by the bank's existing and future foreign-currency payment orders. Garanti BBVA said the deal is part of a strategy to diversify its wholesale funding on international markets and strengthen its access to long-term financing. The two maturities are a little over five years and just under seven. Of the total, €100 million is set aside for women and young entrepreneurs.
The European Bank for Reconstruction and Development said on 26 October that it is investing €100 million in senior rated notes issued under Garanti BBVA's existing diversified payment rights programme, with the same purpose and the same split. Half, €50 million, falls under the bank's Türkiye Women in Business II programme for on-lending to women-owned or women-led small and medium-sized enterprises, including firms outside Ankara, Istanbul and Izmir and first-time borrowers. The other €50 million goes through the Türkiye Youth in Business programme to micro, small and medium-sized firms managed or majority-owned by people under 35.
The women's programme also provides non-financial services for eligible borrowers, including advisory support, training, mentoring and networking, with a possible focus on growth-stage and technology firms, the EBRD said. "By combining long-term funding with targeted advisory support and credit enhancement, this investment will help Garanti BBVA to reach more businesses," said Francis Malige, the bank's managing director for financial institutions.
The EBRD said its money comes with first-loss risk cover from the Türkiye Credit Guarantee Fund, underwritten by the Turkish Treasury. It is Garanti BBVA's first transaction under the second phase of the women's programme, after taking part in the first, and its first under the youth programme. The EBRD has committed more than €26 billion in Türkiye since 2009, largely in the private sector.
"With this EUR 400 million DPR transaction, we are diversifying our funding sources while also strengthening our international partnerships," said Mahmut Akten, Garanti BBVA's chief executive. The bank's Turkish-language release gives the same amounts and maturities. Neither of the bank's releases names the investors or gives the pricing.
The EBRD has backed several Turkish borrowers this month, among them up to €100 million for İş Leasing and a €22.5 million loan to the tug builder Sanmar in an Akbank package.