Wholesale Funding Strategy

VakıfBank proceed to diversify its funding structure by obtaining new funding sources in different currencies and maturities while expanding its investor base with structured finance products. VakıfBank has played a pioneer and innovative role among Turkish banks in this area by issuing long-term bonds in different structures and currencies to address different groups of investors in international capital markets since 2012.

In 2019, VakıfBank became the most active and most effective Turkish bank that uses international funding sources. VakıfBank continued to finance the real sector with the long-term and cost-effective sources we provide under different structures such as Eurobond, Mortgage Covered Bond Program, project loan-backed financing and transactions under the securitization program.

Many first-of-a-kind deals we have introduced in the Turkish banking sector such as:

  • In April 2013, first GMTN program in Turkey was established up to USD 3 billion
  • In June 2014, VakıfBank issued the first ever Euro denominated Eurobond of Turkey apart from the sovereign with a final amount of EUR 500 million within the scope of the GMTN
  • In January 2015, first time ever Basel III Compliant Tier II transaction of USD 500 million with 10NC5 in Turkey
  • In May 2016, EUR 500 million, first ever Mortgage Backed Covered Bond issuance in Turkey
  • In October 2017, first TL denominated private placement Transaction under Covered Bond Programme, apart from those made with multinational development banks amounting TL 1,333 million with 5.5 years maturity
  • In September 2019, first ever TLREF indexed Tier II notes issuance with an amount of TL 725 million out of Turkey
  • In February 2020, VakıfBank reinforced the positive investor perception by using the call option for Turkey’s first Basel III compliant Tier II notes which the Bank signed in January 2015, amounting USD 500 million and a 10 year-maturity together with the call option at the end of fifth year. This was an exemplary decision in the Turkish banking sector.