Hepsiburada's Asset-Backed Security Issuance Oversubscribed Amid Strong Investor Demand
Rhea-AI Summary
D-MARKET Electronic Services & Trading, operating as Hepsiburada (NASDAQ: HEPS), successfully issued its first asset-backed security (ABS) worth 150 million TRY on June 5, 2024. This issuance is part of a 2 billion TRY limit approved by the Capital Markets Board to PASHA Yatırım Bank Hepsiburada Asset Finance Fund. PASHA Bank facilitated the issuance through Türkiye's first digital ABS platform.
The ABS includes four tranches with maximum maturities of 147 days and interest rates ranging between 54% and 57%. Funds from this issuance will support the growth of Hepsiburada's Buy Now Pay Later (BNPL) business and reduce its working capital impact. The offering was oversubscribed, ending the marketing period early, and attracting major asset management companies, pension funds, and high-net-worth individuals.
Positive
- Successful issuance of asset-backed security worth 150 million TRY.
- Part of a larger 2 billion TRY limit approved by the Capital Markets Board.
- High investor demand leading to early termination of the marketing period.
- Interest rates between 54% and 57% are attractive for investors.
- Funds will sustainably grow Hepsiburada's BNPL business.
- Diverse investor base including major asset management companies, pension funds, and high-net-worth individuals.
Negative
- High-interest rates (54% to 57%) could increase financial costs.
- Short maturity periods (maximum 147 days) may pose a liquidity risk.
- Potential dependency on BNPL receivables for future funding.
News Market Reaction – HEPS
On the day this news was published, HEPS gained 6.67%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The issuance, which took place on June 5, 2024, includes four tranches with a maximum maturity of 147 days. The interest rate varies between
The funds raised through this issuance will be utilized to sustainably grow Hepsiburada's BNPL business and reduce its impact on working capital. The offering was significantly oversubscribed, and the marketing period was terminated early due to this strong demand, reflecting significant investor appetite. Investors in the issuance included major asset management companies, pension funds, and high-net-worth individuals.
About Hepsiburada
Hepsiburada is a leading e-commerce technology platform in Türkiye, connecting over 63 million members with approximately 230 million stock keeping units across over 30 product categories. Hepsiburada provides goods and services through its hybrid model combining first-party direct sales (1P model) and a third-party marketplace (3P model) with over 101 thousand merchants.
With its vision of leading the digitalization of commerce, Hepsiburada acts as a reliable, innovative and purpose-led companion in consumers' daily lives. Hepsiburada's e-commerce platform provides a broad ecosystem of capabilities for merchants and consumers including: last-mile delivery and fulfilment services, advertising services, on-demand grocery delivery services, and payment solutions offered through Hepsipay, Hepsiburada's payment companion and BNPL solutions provider. HepsiGlobal offers a selection from international merchants through its inbound arm while outbound operations aim to enable merchants in Türkiye to make cross-border sales.
Since its founding in 2000, Hepsiburada has been purpose-led, leveraging its digital capabilities to develop the role of women in the Turkish economy. Hepsiburada started the 'Technology Empowerment for Women Entrepreneurs' programme in 2017, which has supported over 50.5 thousand female entrepreneurs throughout Türkiye to reach millions of customers with their products.
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SOURCE Hepsiburada