OYAK Securities, which has been associated with power, quality, trust and prestige in its sector since the day it was founded, 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 2.4 times more demand for the issuance with a total value of TRY 367 million.
Developing and increasing its product portfolio day-by-day, OYAK Securities mediated the issuance of Asset Based Securities (ABS) issued in cooperation with Fibabanka and the Türkiye Menkul Kıymetleştirme Şirketi (TMKŞ). With the ABS issuance, 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 with this interest, the issuance of ABS is expected to accelerate.
2.4 times more demand
There was a 2.4 times more demand (TRY 894 million) from the investors for the issuance of TRY 367 million. The issuance was completed with a total of 13 different maturity ranges, A and B groups, with the shortest term of 30 days and the longest of 271 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.
