Seker Mortgage Finansman A.S. (SMF) is the first mortgage company established in Turkey to participate in the mortgage lending business in Turkey in compliance with the mortgage law of 2007. Main shareholders of SMF are Sekerbank and Ipotek Financing SA. Sekerbank is a publicly listed mid-size reputable Turkish commercial bank. Ipotek Financing S.A. (“Ipotek”) is a Luxembourg based holding company established in November 2006 to participate in the mortgage lending business in Turkey. Following Ipotek’s application for a consumer finance company license to participate in the primary mortgage lending business in Turkey, the Banking Regulatory and Supervisory Authority (“BRSA”) in Turkey granted its approval in November 2007 and a new entity, ISTANBUL MORTGAGE FINANSMAN A.S. (“IMFAS”) was established in January 2008 in Istanbul, owned by Ipotek. After extensive due diligence and inspections by BRSA of IMFAS to ascertain the company’s readiness to start its lending operations, BRSA granted IMFAS a full operating license in September 2008.
51% of IMFAS shares were acquired by Şekerbank T.A.Ş. which is a publicly listed company in December 2010. The company is renamed as Şeker Mortgage Finansman A.Ş. (“SMF”) after this acquisition. SMF raised capital in 2012 where the share amount held by Şekerbank increased to 62%.
SMF has been fully staffed since 2007 and has been working out of its offices in Istanbul on credit scoring policies, credit manuals, acquisition and implementation of specialized mortgage servicing IT systems, researching marketing and distribution channels and addressing regulatory and legal issues. SMF has recently commenced its mortgage lending and started booking loans.
Ipotek’s shareholders are York Capital Management (“York”), the founding partners of SMF, The majority of shares in Ipotek are owned by York.
SMF obtained from Overseas Private Investment Corporation (“OPIC”) a USD 200 million, 20 year final maturity credit facility, which has been in utilization since the initial disbursement received in July 2011. Since the initial disbursement, $122 million of the facility has been withdrawn. Under the terms of very competitively priced OPIC facility, SMF will be required to attract a further USD 12 million of equity in order to access the second phase of USD 78 million, which can be expected to be required by SMF by Q2 2013. In the present global environment of very scarce credit, having this OPIC facility gives SMF a significant competitive advantage over its rivals. A highly-detailed financial model has been prepared by SMF (available on request), which concludes that the company can be very attractively profitable even if it is unable to access any further financing other than the OPIC facility, and simply builds a portfolio of mortgages using equity and the OPIC facility and runs the assembled mortgage portfolio off over a number of years. Much greater returns can be generated for the shareholders of SMF by growing the business through attraction of other sources of financing and rapid growth of mortgage lending.
|Ipotek Financing S.A.||B||9.800.000,00||37,69%|
|Şeker Faktoring Hizmetleri A.Ş.||A||1,30||0,00%|
|Şeker Finansal Kiralama A.Ş.||A||1,30||0,00%|
|Şeker Yatırım Menkul Değerler A.Ş.||A||1,30||0,00%|
|Paid in Capital||26.000.000,00||100,00%|