OYAK SECURITIES mediated the issuance of ABS, of which Fibabanka Asset Finance Fund No. (2) and (3), established by the Türkiye Menkul Kıymetleştirme Şirketi, is the issuer. There was a 2.9 times more demand for the issuances with a total value of TRY 1 billion, which is the largest issuance amount to date, in the ABS issuances in cooperation with TMKŞ, Fibabanka and OYAK SECURITIES.
Developing and increasing its product portfolio day by day, OYAK SECURITIES mediated the issuance of the highest Asset Based Securities (ABS) of last three years issued in cooperation with Fibabanka and the Türkiye Menkul Kıymetleştirme Şirketi (TMKŞ). With the ABS issuance of TRY 1 billion, Fibabanka consumer loans were securitized, making a significant contribution to the formation of the secondary loan market.
The secondary loan market, which is a very important step for Istanbul's goal of becoming a financial center, is expected to increase its share in the capital markets in the coming period.
Withholding tax rate decreased to 5% in ABS
According to the Presidential Decree published on 27.06.2022, the withholding tax rate applied to income and earnings from ABS was decreased to 5%. With this decree, the interest of individual investors as well as institutional investors in ABS is expected to increase and the issuance of ABS is expected to accelerate.
TRY 1 billion of issuance
There was a 2.9 times more demand (TRY 2,872 million) from the investors for the issuance of TRY 1 million. The issuance was completed with a total of 20 different maturity ranges, A and B groups, with the shortest term of 33 days and the longest of 364 days, by utilizing the product development, credit analytics, IT infrastructure and operation services offered by TMKŞ.
Group A securities were issued with discount, while Group B securities were issued with coupons. The coupon yield of Group B securities is designed to vary according to the payment performance of the loans and the monetization of the cash flows from the loans.
