Best emerging-markets securitization issuer: Garanti Leasing IFC Finance Ltd.
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Best emerging-markets securitization issuer: Garanti Leasing IFC Finance Ltd.

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 of the transaction. The key to its favourable rating was a well-structured package created by the IFC and underwritten by Dutch bank Rabobank. Bear Stearns advised Garanti.


The IFC, a member of the World Bank group, provides loan and equity Wnancing for private-sector projects in the developing world.





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