Turkey’s Sekerbank to issue SME-backed covered bond

Turkey’s Sekerbank is set to launch the first Turkish covered bond. Although it is backed by Turkish lira SME loans, the deal is nevertheless a genuine dual recourse instrument that is enshrined within the Turkish law. It is not only the first deal to be issued under the Capital Markets Board of Turkey law, but also the first secured deal to be backed by cashflows from existing local currency assets, rather than future receivables.