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Mitigation of Sovereign Interference Risk: DPR transactions substantially mitigate foreign currency transfer and convertibility risk.
  • Debt is issued abroad; and
  • Cash flows and obligors of the debt are offshore, outside the control and the jurisdiction of Turkey.
Potential Hedge Against Economic Downturn in Turkey: Due to nature of the DPR flows and the strong correlation with the country’s exports, DPRs tend to be countercyclical, performing strongly even during economic downturns.
Piercing of the Sovereign Rating Ceiling: The off-shore nature of the SPV, the significant levels of overcollateralisation and robust structure allows DPR transactions to achieve a higher rating than the country ceiling. 
DPR transactions are typically rated a few notches higher than the sovereign ceiling of Turkey.
Strong Originator Predictable, identifiable cash flows originated through experienced originators.
Performance Protections: Early amortisation and mandatory repurchase triggers and ongoing performance monitoring. 
Monitoring typically tends to be monthly and provides a granular breakdown of the remittances, and the performance against the transaction triggers/thresholds.
Overcollateralisation: DPR transactions rely on over-collateralisation to provide security to investors. 
Debt Service Coveraage Ratio (DSCR) quantifies the over-collateralisation and is calculated as periodic DPR flows divided by the largest future principal and interest debt payment (Maximum Debt Service).
A new issuance would typically require a minimum DSCR of 15x to 20x of the Maximum Debt Service.
Strong Track Record: Akbank DPR Programme benefits from an established track record of strong performance, as demonstrated by high over-collateralisation levels and strong external ratings.
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