International financing organization EBRD contributes to Akbank's securities issue through covered bond funding
Europe's banking powerhouse, the European Bank for Reconstruction and Development (EBRD), has plunged into revitalizing Turkey's drowsy bond market through a $100 million equivalent investment in Akbank's Turkish Lira-denominated covered bonds. This bold move marks the rebirth of the covered bonds in the country and makes a significant strides towards bolstering Turkey's financial sector.
Highlighted Aspects:
- Investment details: EBRD's investment intends to rejuvenate the lethargic bond market, boosting financial stability and enticing foreign investments.
- Green Financing: Although the specifics of green finance aren't disclosed, the EBRD's commitment to environmentally friendly ventures implies that these bonds could align with the green economy agenda. Covered bonds usually facilitate long-term financing, which aids in funding green projects.
- Akbank's Aggressive Approach: By issuing covered bonds with EBRD's backing, Akbank propels Turkey's capital markets forward and enables local banks to tap into long-term capital resources.
- Economic Influence: This injection of funds has the potential to influence the broader economy by fortifying Turkey's financial foundation and encouraging other banks to follow suit. It also heralds potential influx of foreign investment, particularly in areas lined with green economy objectives.
Previous Context:
- International Collaborations: Besides, Turkey is forging robust economic relationships with nations like Qatar, focusing on areas like modern manufacturing and green energy. These collaborations could bolster the development of sustainable financing options in Turkey [4].
- Market Renascence: The rebirth of the bond market signifies a promising update for Turkey's financial sector, providing a fresh avenue for banks to raise funds and propel economic activities [3][5].
[References]
- S&P Global (2021, September 30). Akbank T inaugurates with TRL 7 billion in TGB-2 notes. Retrieved from https://www.spglobal.com/marketintelligence/en/news-sapios/asia-pacific-fixed-income/akbank-t-inaugurates-trl-7-billion-in-tgb-2-notes-80232471
- European Bank for Reconstruction and Development (2022, March 3). European Bank for Reconstruction and Development (EBRD) announces €250 million financing for Turkey. Retrieved from https://www.ebrd.com/news/2022/ebrd-announces-e250-million-financing-for-turkey.html
- Reuters (2021, September 30). EBRD invests up to $100 million in Turkish Akbank's covered bonds. Retrieved from https://www.reuters.com/business/finance/ebrd-invests-up-to-100-million-turkish-akbanks-covered-bonds-2021-09-30/
- Hurriyet Daily News (2021, September 30). Qatar's investment in Turkish energy companies aims to raise various opportunities, says Turkish economy minister. Retrieved from https://www.hurriyetdailynews.com/qatars-investment-in-turkish-energy-companies-aims-to-raise-various-opportunities-says-turkish-economy-minister-172506
- Financier Worldwide (2021, October 1). Revival of covered bonds. Retrieved from https://www.financierworldwide.com/revival-of-covered-bonds/
- The EBRD's investment in Akbank's covered bonds, aimed at revitalizing Turkey's bond market, could align with the bank's commitment to environmental-science ventures, potentially fostering green financing in Turkey.
- As Akbank takes an aggressive approach by issuing covered bonds with the EBRD's backing, it not only propels Turkey's capital markets forward but also opens up opportunities for local banks to tap into long-term financial resources, as seen in the realm of environmental-science and finance.
