In January 2000, Turkish leasing company Garanti Leasing became the
Wrst entity to beneWt from securitizing Turkish domestic assets.
A $43 million transaction securitized future receivables from
equipment leases and provided Garanti Leasing with the equivalent
of a $51.4 million loan from the International Finance Corporation.
In times of tough competition from European high-yield issuers and
investors' concerns hanging over from the Russian crisis, the
ability of an emerging-market corporate to raise such amounts is
noteworthy. But to do so at investment-grade pricing is a milestone
for future issuance.
The deal received a rating of Baa2 from Moody's Investors Service
and BBB from DuV&Phelps - Wve notches above Turkey's foreign
currency rating of B/B-.
Even the high rates of default and delinquencies experienced by
Garanti Leasing towards the end of 1998 and during the Wrst half of
1999 could not aVect the success...
