What is a DPR?
Diversified Payment Rights (DPR) are future-flow securitisations primarily used by emerging-market banks. They involve selling hard-currency receivables (exports, remittances, card settlements, SWIFT flows) to an offshore Special Purpose Vehicle (SPV). The SPV issues securities backed by these flows.
Turkish DPR History
By the late 1990s, Türkiye had emerged as the most significant adopter of DPRs, developing a template that has since dominated the market. Through the 2000s, DPRs became institutionalised as Turkish banks refinanced and upsized their programmes regularly. In the 2020s, DPRs have remained central to Turkish banks’ external funding strategies, even as the country has navigated significant macroeconomic challenges. At the same time, DPRs have evolved in purpose: beyond serving as stable foreign-currency financing, they are increasingly used to support sustainability initiatives.
Market timing for the Turkish banks
The case for issuing a DPR at present is supported by a confluence of favourable macroeconomic and credit conditions. Turkish DPR programmes have recently been upgraded into the investment-grade cluster, typically BBB-/BBB, which lowers funding costs for banks and allows them to place debt with longer maturities of 8-12 years. For investors, DPRs provide structurally protected exposure to an emerging market, with the comfort of an investment-grade rating, although this comes with trade-offs in terms of liquidity and structural complexity. Against the backdrop of Türkiye’s sovereign upgrades, improved macroeconomic stability and a busy primary market, conditions are aligned for both issuance and investor participation.