These are the details of the selected bond:
- Issuer: VakifBank
- Covered bond rating(s) at launch: A3 (Moody's)
- Amount: EUR500m
- Maturity date: 4 May 2021
- Coupon: 2.375%
- Swap spread: 250bp
- Pricing date: 26 April 2016
- Settlement date: 4 May 2016
- Bookrunners: Barclays, BNP Paribas, Erste, Natixis, UniCredit
- Country: Turkey
- Collateral type: Mortgage
- The CBR bond ID: 1219
- Green, social, sustainability description: unlabelled
- Notes: Book over Eu3.2bn with almost 300 accounts. Fund managers 69%, central banks and official institutions 14%, banks 13% and insurance companies 4%. Germany/Austria 41%, UK 26%, Switzerland 8%, Nordics 6%, Benelux 6%, other Europe 10%.
Coverage of this deal:
VakifBank covered bond set ‘to open new door’ for Turkey 12 April 2016
An expected debut euro-denominated mortgage-backed covered bond for VakifBank could “open a new door” for Turkish issuers and establish a funding mechanism for growth in the country’s mortgage market, according to an official at the issuer, who also cited the strength of the structure.
VakifBank blow-out debut a validation of Turkish covered 26 April 2016
VakifBank launched the first benchmark covered bond from Turkey today, a Eu500m five year deal that attracted over Eu3bn of demand and which bankers said was a strong endorsement of the country’s new asset class given its pricing relative to senior and sovereign Turkish euro paper.
Vakif hits diversification goal, eyes pricing through Turkey 27 April 2016
VakifBank sold a Eu500m five year debut yesterday that attracted orders from around 300 accounts, achieving the Turkish bank’s main objective of diversifying its investor base, according to an official at the issuer, while also setting the product on the path to pricing through the sovereign.