Akbank successfully launched Turkey's first Mortgage-Backed Security program by issuing 410 million TL in long-term bonds, signaling a significant step in supporting SME funding in collaboration with the European Investment Bank.

Target Information

Akbank has established itself as a pioneer in Turkey's banking sector by becoming the first bank to issue long-term bonds in Turkish Lira (TL), backed by mortgage-secured residential loans. In December 2022, the bank launched Turkey's first Mortgage-Backed Security (MBS) program and successfully completed its inaugural issue of approximately 410 million TL in bonds, maturing in five years, with the support of the European Investment Bank (EIB).

According to Hülya Kefeli, Deputy General Manager responsible for International Banking at Akbank, this issuance marks a significant step in the bank’s commitment to leading Turkish banks in international capital market transactions. The issued bonds achieved an A3 credit rating, reflecting the robust structure and demand for these securities. Kefeli emphasized the strategic timing of this issuance, recalling that Akbank was also the first to issue TL Eurobonds abroad back in 2013, highlighting a continual expansion of long-term TL issuance.

Industry Overview in Turkey

The banking industry in Turkey is characterized by its rapid growth and adaptation to global standards, particularly in the context of mortgage-backed securities. This innovation allows banks to diversify funding sources while providing affor