Garanti BBVA Launches Asset-Backed Securities
Garanti BBVA recently launched asset-backed securities (ABS), offering qualified investors a new structured investment alternative. The issuance enhances the bank’s flexibility in asset and liability management while reinforcing its overall balance sheet strength. The transaction also created a new source of liquidity for Garanti BBVA, and supported its capital adequacy ratios.
The issuance attracted strong interest from investors, with demand exceeding expectations. ABS issuances are part of the bank’s ongoing efforts to expand its product diversity in capital markets and are widely used in both domestic and international markets as a financing and credit risk management tools.
Garanti BBVA CEO Mahmut Akten explained that the bank aims to introduce innovative products that support the development of capital markets, while offering investors more diversified investment and financing solutions. “The strong demand demonstrates that this transaction meets a clear need in the market. We will continue to create value through innovative financing solutions,” he said.
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 Türkiye Securitization Company (TMKŞ). These assets were subsequently securitized and offered to investors.
TMKŞ General Manager Haldun Nigiz noted that the transaction, with Garanti BBVA acting as the originator. Helped showcase the value of ABS structures in balance sheet management and alternative financing, while making a meaningful contribution to product diversification in the country’s capital markets. “Going forward, we will continue to bring innovative financing solutions to capital markets in collaboration with banks and financial institutions," he said.