OREANDA-NEWS. DFS Funding Corp. issued EUR 264 million through 5 series notes for the Turkish bank Denizbank A.S. Sberbank CIB, HSBC Bank plc and Standard Chartered Bank organized the transaction.

The notes were privately placed. The European Investment Bank (“EIB”), the European Bank for Reconstruction and Development (“EBRD”), HSBC Bank plc (“HSBC”), Standard Chartered Bank (“Standard Chartered”) and Sberbank Europe AG were the investors.

All notes received a BBB, stable outlook rating from Fitch Ratings. The final maturity of the notes spans from 5 years to 8 years. The notes have a 2 years interest only period, followed by straight line amortization. This deal enables DenizBank to substantially extend the maturity profile of its liabilities through a simple and predictable mechanism for managing debt amortization.

DFS Funding Corp acted as issuer and provided foreign currency funding to DenizBank against the receivables (diversified payment rights or DPR) generated under the Bank’s internal payment processing business. These receivables have been sold to the DFS Funding program and serve to pay interest and principal due on notes issued by DFS Funding Corp.

Andrey Ivanov, Global Head of Trade Finance and Correspondent Banking at Sberbank CIB, commented: “The organization of this DPR2 issuance helps to optimize the structure of Denizbank’s long-term funding. Sberbank CIB’s role as organizer helped ensure the successful closing of the deal despite the complicated market situation. This is the first DPR deal for Sberbank Group and we are planning to organize and participate in other international structured deals in the future.”