Garanti Securities

Garanti Securities, fully owned by Garanti Bank, provides services to its domestic and foreign clients in corporate finance, research, brokerage and private equity. In addition to mergers and acquisitions, equity offerings and privatizations, Garanti Securities serves as one of the leading custody and clearing companies to both domestic and international clients.

Garanti Securities has proven its investment banking success with the following awards: Global Finance's "Best Investment Bank" award in 2007, 2008 and 2009 and the "Best Investment Bank" award in 2009 by EMEA Finance.

Corporate Finance

Since its establishment, Garanti Securities has closed a total of 34 privatizations and 51 M&A transactions for both domestic and international clients. Garanti Securities led and co-led 39 and 64 equity offerings, respectively, and advised in offerings for 26 fixed-income securities. The total volume of corporate finance transactions performed to date has reached US$13 bn.

Garanti Securities rounded off a successful year in corporate finance transactions in 2008, including privatizations. Six transactions were closed with a combined transaction volume of US$3.8 mn. The key deals closed in 2008 were as follows:

• In May, Garanti Securities acted as the global coordinator in the privatization of Turk Telekom through the equity offering of a 15% stake in the telecom operator. The US$1.9 bn transaction was the largest equity offering which had been realized in Turkey, and was ranked fourth among global equity offerings in 2008 in terms of size.
• Garanti Securities acted as the sell-side financial advisor to the Savings, Deposits and Insurance Fund in Turkey for the sale of assets of the media groups, ATV-Sabah and Kral Media Group, for US$1.1 bn and US$95 mn, respectively.
• Garanti Securities has acted as the advisor to Sanko Group in the sale of 30% shares of Cimko Cement to the Italian cement company Cementerie Aldo Barbetti, for a total consideration of US$400 mn.
• Garanti Securities also played an active role in public sector debt offerings and advised Koc Finans, one of Turkey's leading consumer finance companies, in the debt offering with a 24 months maturity and nominal value of TRY150 mn.
• Garanti Securities was the financial advisor in the tender offer for Acibadem shares, with a total size of US$194 mn.

Brokerage Services

Garanti Securities offers brokerage services through its domestic and international networks. Brokerage services are supported by the research department, which prepares and publishes comprehensive reports on the Turkish macro economy and ISE-listed companies, while releasing flash notes on investment opportunities. Brokerage services are provided to clients through Garanti Bank's nationwide branch network. The total trading volume in brokerage services was realized as TRY 26 bn in 2008; in the first half of 2009, the total trading volume had already reached TRY22 bn, supported by an increased market share of 5.4%.

Research and Institutional Sales

Garanti Securities works with a highly qualified research team whose portfolio recommendations have consistently outperformed the index returns over the recent years. The team boasts a strong track record with its timely and valuable recommendations as well as its stock picks. The research team's stock picks have generated a relative performance of 30% with respect to the ISE-100 index between January-August 2009, and an even more impressive 57% relative performance since 2008. The team has an extensive and in-depth coverage of ISE-listed companies and produce research reports on macro economics and fixed income securities. The scope of coverage encompasses Turkey's leading industries, including banking, telecoms, automotive, commodities and conglomerates. The research team provides periodical and daily updates with fundamental and technical analysis for stocks in its coverage to its domestic retail and institutional international clients. The research team also participates in corporate finance projects such as IPO's, asset sales and other projects.

The company's state of the art technological infrastructure facilitates ease and speed in transactions. The specialized department provides seamless execution to foreign investors' orders for the ISE and the TURKDEX. The International Sales Department's market share continues to grow, notching up an increase of nearly 30% YoY in trading volume in 2008. As well as providing action-oriented and timely calls for clients, the department organizes regular road-shows for clients with representatives from top listed Turkish companies.

Private Equity

Garanti Securities is in the process of developing its Private Equity arm, as private equity activity has grown increasingly widespread in Turkey since 2006, while also becoming widely accepted as a preferred source of finance by Turkish Companies. Within the current conjuncture following the global crisis; 2010 is expected to be a ripe year for private equity, both in Turkey and worldwide, as prices reach levels appropriate to take investment decisions in relation to the portfolio companies from which attractive returns would be achieved with the planned exits within the target time horizon. Thus, Garanti Securities Private Equity arm plans to realize its initial portfolio investments. The Private Equity team currently develops relationships with other private equity funds to evaluate potential co-investments and club deals, while the team also screens diversified sectors and companies in order to determine target companies as to create a substantial deal pipeline by utilizing its origination capacity through its wide reach of network.

Future Outlook

The Corporate Finance department plans to maintain its lead in mergers and acquisitions with an emphasis on prospective private sector debt offerings. In addition, the Corporate Finance department plans to go further in privatizations in the energy, infrastructure, real estate and other major sectors. The Corporate Finance department, with its reach of Garanti Bank's corporate client base, aims to increase its transaction size and maintain its leading position in the corporate finance business.