A world record USD1.2 billion securitization from Yapı Kredi

Immediately Following Legal Merger On 2 October 2006, Yapı Kredi Successfully Completes Inaugural Issue Into International Debt Capital Markets Under Yapı Kredi's Diversified Payment Rights (“DPR”) Programme: A World Record US$1.2 billion Securitization

On 14 December 2006, Yapı Kredi secured US$1.2 billion through diversified payment rights issue. Arranged and underwritten on a joint lead basis by Standard Chartered Bank and UniCredit Markets & Investment Banking, acting through Bayerische Hypo- und Vereinsbank AG and UniCredit Banca Mobiliare S.p.A., the transaction is composed of five tranches, four of which are wrapped by monoline insurers (Assured Guaranty, MBIA, Radian Asset Assurance and Ambac).

The first US$175 million tranche, the second US$200 million tranche and the fourth €300 million tranche have maturities of 8 years while the third tranche of US$115 million and the fifth unwrapped tranche of US$310 million have maturities of 7 years and 5 years, respectively.

Diversified Payment Rights (DPRs) are US Dollar, Euro and Sterling denominated payment orders created via SWIFT MT 103 or similar payment orders accepted by Yapı Kredi. DPRs are derived primarily from Yapı Kredi's trade finance and other corporate businesses and are paid through foreign depositary banks.

Being an important part of Yapı Kredi's international funding efforts, the DPR programme is providing Yapı Kredi with the opportunity to access international term funding and a global investor base on a flexible basis. Among Turkish banks, Yapı Kredi is experienced as an originator and servicer of future flow securitizations, having completed a cheque remittance securitization in 1997 and issued its first DPR securitization in 2003.

As a testimony to Yapı Kredi's stature in both the Turkish banking community as well as the international debt capital markets, the transaction is uniquely positioned for the following reasons:

1. The success of this inaugural issue by Yapı Kredi following its recent legal merger with Koçbank confirms Yapı Kredi's ability to successfully access term funding in the international capital markets.
2. Being the largest DPR securitization transaction completed to date globally and the single largest issuance into the international capital markets by a non-governmental entity out of Turkey, the issue - with both its size and success - firmly positions Yapı Kredi as a leading Turkish issuer in the international debt capital markets.
3. A transaction of this size was smoothly executed in limited time frame by bringing together four recognized monoline insurers given the fact that Yapı Kredi merged with Koçbank on 2 October 2006.
4. Despite the current market conditions, the transaction was oversubscribed, priced at tight levels and was placed with 24 different investors, with the greatest geographic distribution of investors in the United Kingdom, Germany, France, US, Ireland, Belgium, Portugal and Sweden -- an underscore for the investor interest in this inaugural issue by Yapı Kredi.

The details of the transaction are outlined in the table below:

İstanbul, 18 December 2006.

Enquiries:
Yapı Kredi Investor Relations
Tel: (90) (212) 339 7647
Email: yapikredi_investorrelations@yapikredi.com.tr

Yapı Kredi / 18 Dec 2006

 

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