Clearstream’s AuC in Turkey Increase 40% in the Last 12 Months

Clearstream has increased its assets under custody in Turkey by 40% in the last 12 months on the back of demand by its customers to access to the country’s capital markets.
By Janet Du Chenne(59204)
Clearstream has increased its assets under custody in Turkey by 40% in the last 12 months on the back of demand by its customers to access to the country’s capital markets. This increased demand is the result of the market being granted investment grade status this year following ratings by Fitch, Standard & Poors and, more recently, Moody’s.

The ICSD marks its 15th anniversary as a facilitator of settlement and custody for the trading in the Turkish domestic capital debt market.

Equally, Clearstream has been supporting the domestic capital markets and the local banking community in meeting their financing needs such as supporting local issuers in Turkey to access the international debt markets. Clearstream has participated to a number of facilities of the European Investment Bank secured by Eurobonds.

Following the positive news from the rating agencies, there has been increased issuance more widely. Indeed, Borsa Istanbul for example is growing as an attractive venue for new listings – the number of issuers has grown by over 15% since January 2011 and the market capitalization of the equity market has grown by circa 20%.

Clearstream’s link to Turkey is in the form of a link to Turkey’s CSD and was strengthened this time last year. Following the appointment at the end of last year of new partner Turk Ekonomi Bankasi (TEB) to operate Clearstream’s link locally, Clearstream enhanced its securities deadlines and services to customers across a wide range of domestic instruments – including corporate bonds and warrants.

Mark Gem, head of Business Management and Member of the Executive Board of Clearstream, says: “Growth has come from financial institutions in all geographies and segments increasing exposure to Turkey. We remain excited about this market – in particular following a positive second investment-grade rating earlier this year, we have noticed that this has increased interest in Turkey that has translated into further demand for Clearstream’s products and services. We have seen the collective assets under custody we hold on behalf of our customers in Turkey increase by 40% this year as demand from investors and issuers to access this market has grown.”

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