On 1 August 2017, Odea Bank closed its inaugural international bond issuance of USD 300 mln. Over seventy international investors participated in the Basel III compliant Tier II issuance, which has a coupon rate of 7,625%. Final maturity of the issuance is 1 August 2027 and is callable on 1 August 2022. FMO acted as a pre-committed anchor investor in this capital market debut of Odea Bank. The total issue was oversubscribed two times.
Odea Bank is a universal top 11 bank in Turkey with growth ambitions in the SME segment and renewable energy. Odea Bank has successfully built a franchise in a competitive Turkish market during a challenging period via an innovative low-cost business model, built on successful Fintech applications and a prudent ALM framework. Currently, the bank has nearly one million clients.
FMO's involvement in Odea Bank underlines its commitment to facilitate financing for SMEs, strengthening local economies and creating local prosperity. As use of funds, FMO earmarked 50% for SMEs and 50% for Renewable Energy. The total FMO exposure ended up at USD 22.5 mln.