BBVA initiates risk transfer process for Garanti BBVA's SME loans
The Spanish bank is working with international institutions to protect its Turkish subsidiary's multi-billion-lira loan portfolio.
Spanish banking giant BBVA SA has initiated risk transfer studies for a portfolio consisting of SME loans belonging to its Turkish subsidiary, Garanti BBVA, valued at approximately 100 billion liras.
Risk Transfer Studies
Spanish banking giant BBVA SA has accelerated its official efforts to execute a risk transfer tied to a portfolio consisting of SME loans from its Turkish subsidiary, Garanti BBVA.
Portfolio Size
Covering an SME loan portfolio valued at approximately 100 billion liras, or 2.1 billion dollars, this strategic transaction is being closely monitored in the financial sector.
A Rare Move in the Market
A step of this magnitude represents a very uncommon example in terms of the use of hedging derivatives and risk protection tools in emerging markets.
The Role of the IFC
According to information provided by sources close to the matter, the International Finance Corporation, the private sector arm of the World Bank Group, will act as the anchor investor in this transaction.