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İŞBANK
ANNUAL REPORT 2014
38
İŞBANK AND
ITS ACTIVITIES
IN 2014
Effective use of the Global Medium
TermNote (GMTN) Program
İşbank established a USD 1.75 billion GMTN
Program in 2013 to facilitate the issuances
of borrowing instruments in different
currencies and different maturities in
international markets and to provide
flexibility and diversity to its borrowing
sources. The programwas updated in 2014
by increasing the program limit to USD 5
billion. In 2014, through the program, in
addition to 81 bond issuances to individual
investors (private placements) amounting
to USD 1.8 billion, two benchmark Eurobond
that amounted to USD 1.5 billion in nominal
value were issued in debt capital markets.
As a result, the total volume of issuances
made under the GMTN programwith
various maturities and currencies reached
to USD 3.3 billion in 2014.
İşbank Eurobond issues generated high
demand in international markets.
The first benchmark Eurobond issue of
İşbank under the GMTN program in 2014
had a nominal issue amount of USD 750
million and a 7-year maturity. The issue was
completed on June 25, 2014 and carries a
5.00% coupon rate and 5.226% yield. The
issuance was oversubscribed more than
four times by approximately 300 investors.
The second benchmark Eurobond issue in
debt capital markets in 2014 was completed
on October 30, 2014. The issue, with a USD
750 million in nominal value has a 5.5-year
maturity, 5.00% coupon and 5.14% yield
rate. The issuance was oversubscribed
more than five times by about 300
investors.
İşbank obtained new funds under the
loan agreements signed with European
Investment Bank (EIB).
A framework agreement was signed on
May 9, 2014 between İşbank and EIB for
the financing of loans to be extended to
the housing development projects covered
by Law No. 6306 on the Transformation of
Areas Under Disaster Risk, and that meet
the criteria set by EIB. The agreement
enables the drawdown of funds up to EUR
200 million or its equivalent with a maturity
of up to 10 years that is to be on-lend to
the Bank’s customers to finance improving
earthquake safety and energy efficiency in
housing.
This facility is the first credit facility
provided to a Turkish bank from EIB for the
financing of urban transformation projects.
Having collaborated with EIB for many
different purposes to date, İşbank has, with
this facility, for the first time obtained funds
from EIB that is to be used for consumer
financing.
Under another framework agreement
signed on December 22, 2014 between
EIB and İşbank, İşbank was granted USD
123.6 million and EUR 50 million to finance
the working capital needs or investment
projects with a total cost of up to EUR 50
million, of SMEs with up to 250 employees
and companies with 250 to 3,000
employees. The maturity of the facility is
eight years.
USD 500million financing linked
with the securitisation of diversified
payment rights
On August 27, 2014, İşbank obtained USD
500 million under a financing transaction
with a maturity of 10 years under
the Diversified Payment Rights (DPR)
securitization program established in 2004.
USD 250million obtained fromWells
Fargo and OPIC
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On December 10, 2014, İşbank completed
the second transaction of 2014 under
the Bank’s Diversified Payment Rights
securitization program. The securitization
deal, amounting to USD 250 million in
total, consists of two tranches:
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A tranche of USD 220 million, which has
been provided by OPIC (Overseas Private
Investment Corporation), with a final
maturity of 14 years.
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A tranche of USD 30 million, which has
been provided by the Wells Fargo Bank
NA, with a final maturity of 5 years.
These funds will be used in meeting the
financing needs of SMEs, including women
entrepreneurs and SMEs operating in
development priority zones, provided that
such enterprises meet the criteria set by
OPIC. This facility was the first collaboration
between the İşbank and OPIC.
İşbank signed loan agreements with the
European Bank for Reconstruction and
Development (EBRD) for the financing
of various areas of the economy.
On December 19, 2014 İşbank and the
EBRD signed loan agreements amounting
to USD 127.5 million with a final maturity
of five years for the financing of women
entrepreneurs, energy efficiency projects
and agricultural enterprises. Of the loans
obtained:
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USD 90 million is to be used to finance
renewable energy and activities
aimed at effective and efficient use of
energy under the Turkey Private Sector
Sustainable Energy Finance Facility
(TurSEFF);
In 2014, İşbank continued to obtain long-term and
diversified funding through effective use of opportunities
to access international markets.