Turkish VakifBank secures $700M with its first overseas borrowing transaction of 2025

Türkiye’s second-largest bank, VakifBank, has completed its first overseas borrowing transaction of 2025, securing a 10-year securitization deal worth $700 million, with a four-year grace period for principal payments.

The transaction was executed through diversified payment rights (DPR) securitization, a financial method where the bank bundles its future cash flows—mainly from foreign trade transactions—and sells them to investors in exchange for immediate funding.

With this transaction, the bank has executed its largest diversified payment rights (DPR) deal targeted at institutional investors.

‘Reaffirming the confidence in both VakifBank and Türkiye’

Speaking on the significance of the deal, VakifBank CEO Abdi Serdar Ustunsalih emphasized the strong interest from global investors, attributing it to a recent upgrade in the bank’s DPR program rating. He noted that in September 2024, U.S-based credit rating agency Fitch raised the program’s rating to investment grade, which significantly increased interest from institutional investors, particularly in the U.S. and the U.K.

“This once again reaffirms the confidence in both VakifBank and Türkiye in international markets,” he stated.

Ustunsalih also emphasized the bank’s strong position in foreign trade financing and its growing market share. “In line with our strategy of securing long-term, sustainable, and cost-effective financing, we will continue leveraging our foreign trade cash flows in global markets to contribute to Türkiye’s economy,” he added.