TF VARLIK KİRALAMA A.Ş.

TF Varlık Kiralama A.Ş. was established as a Türkiye Finans’ 100% affiliation in February 2013 to intermediate the Bank in finding funds by issuing domestic and international lease certificates. The Company aims to carry out the Bank’s domestic and international capital market issuances.

Public issuances of lease certificates exceeded TL 6 billion in 2016 and increased by 85% YoY, paving the way for the state lease certificate export stock to reach approximately TL 10 billion by the end of 2016. The state, which had been issuing lease certificates twice a year in previous years, increased this frequency to five times per year in 2016. It even carried out the issuance of lease certificate indexed to TÜFE (Consumer Price Index) for the first time.

2016 was the year, which the public sector focused on the issuance of lease certificates. On the other hand, 4 different asset leasing companies issued in total 30 lease certificates domestically in Turkey. The volume of issuance exceeded at TL 3 billion in 2016 increasing by 9% compared to 2015.

TF Varlık Kiralama A.Ş., as the asset leasing company that has the largest size of assets in Turkey, issued 10 lease certificates in 2016. Total issuance volume in 2016 was approximately TL 1 billion.

In 2016, TL 450 million of lease certificates were issued, marking an increase of 36% YoY. These were issued through public offerings by TF Varlık Kiralama A.Ş. In 2016, the total volume of domestic issuances carried out through issuance to qualified investors stood at TL 535 million, representing an increase of 45% YoY.

In the issuance of lease certificates carried out in 2016, Türkiye Finans took part in the capacity of fund user, while TF Varlık Kiralama A.Ş. was an issuer.

As a result of the strong demand for lease certificates and the issuances that we have carried out, the company rounded off a successful year.

The company continues to strengthen its position in the sector with its strong capital structure. The Company carries out the issuances of its dominant partner, Türkiye Finans Katılım Bankası. In November 2016, the company’s priority unsecured borrowing instrument (Sukuk) issue rating was confirmed by the Fitch rating agency as BBB.

We expect the company, which performed 32% of the domestic lease certificates issuances carried out in Turkey in 2016, to achieve a strong growth performance in line with the growth in the sector in 2017.

TFKB VARLIK KİRALAMA A.Ş.

TFKB Varlık Kiralama A.Ş was founded on 8 July 2014 as an affiliation with Türkiye Finans following the approval of the Banking Regulation and Supervision Authority and the Capital Market Board, and the company was registered to the trade registry. TFKB Varlık Kiralama A.Ş was established with the purpose of realizing the issuance of the lease certificates in which those companies which are customers of the Bank take part as the resource establishment.

Working to a vision of providing long term interest-free financing to the private sector, TFKB Varlık Kiralama A.Ş. has extended a total of TL 314 million in resources to the real sector through lease certificate issuances since its establishment.

Our company carries out the issuances with a reference from Türkiye Finans Katılım Bankası that is the controlling shareholder of our company. Our company with its strong investor structure plans to continue increasing successful issuances also in 2017.