Garanti Securities

Garanti Securities an affiliate of Garanti Bank, provides corporate finance, research and capital markets brokerage services for domestic and international customers. With its market strength in mergers and acquisitions advisory, equity and debt offerings, domestic and international brokerage, settlement and custody services Garanti Securities remains the leading brokerage house in Turkey.

Corporate Finance

Since its inception, Garanti Securities has carried out 102 equity offerings, as the consortium leader in a total of 38. The company has completed 55 successful merger and acquisition transactions including privatizations, in which it advised domestic and international customers. The total volume of corporate finance transactions advised by Garanti Securities so far is US$9.3 billion.

Activities in 2007

Corporate Finance

• This has been a successful year for Garanti Securities, the total transaction volume for mergers and acquisitions increased more than 30% in 2007. Six major transactions were finalized during the year and the total transaction volume was US$ 2.3 billion.
• Garanti Securities was the joint-global coordinator in the equity offering of TAV Havalimanlar Holding A.Ş., finalized in the first quarter of 2007, at a market value of US$ 1.74 billion. The total demand exceeded US$ 5 billion for the US$ 320 million offering.
• Garanti Securities performed five merger and acquisition transactions in 2007. In May 2007, it participated in the privatization of the land owned by the 17th Region of the General Directorate of Highways, as sell-side advisor. At the end of a public tender, Zorlu Holding purchased the land for US$ 800 million. In May 2007, Garanti Securities acted as the sell-side advisor to Sanko Holding at the sale of the stake of Çimko Çimento to Cementerie Aldo Barbetti and for the PSA-Akfen consortium during the privatization of Mersin Port, which concluded at US$755 million. Garanti Securities also acted as the sell-side advisor to the Savings Deposit Insurance Fund (“SDIF”) during the sale of Sagra for US$ 77 million and to the sale of Sanlıurfa Çimento.
• In 2007, Garanti Securities played an active role in the offering of corporate bonds. It was the lead arranger in the offering of the corporate bonds of Koç Finans with a maturity of 18 month, which had a total nominal value of YTL 60 million.

Brokerage Services

Garanti Securities provides stock brokerage services for customers through its Domestic and International Capital Markets Departments. Brokerage activities are supported by the Research Department, which has strong reporting capabilities on the Turkish economy, listed companies and investment recommendations. The brokerage services of Garanti Securities
are brought to customers through the extensive distribution network of Garanti. In 2007, the number of customers served by the Company reached 170,000 and its business volume reached US$26.4 billion.

In June 2007, Garanti Securities was named the Best Investment Banking Institution in Turkey by international finance magazine Global Finance. In December 2007, Turkey's leading finance magazine Capital granted Garanti Securities the Most Admired Brokerage House award for the fifth time.

Garanti Securities served 170,000 customers in 2007 and total trading volume in brokerage services went up 26%, to US$ 26.4 billion. As of the end of the year, Garanti Securities' market share in the ISE was 4.1%.

Future Outlook

Garanti Securities is planning to maintain its strong position in public offerings, mergers and acquisitions and focus on private equity transactions and corporate bonds, which a have a high growth potential. The Company also aims to play an active and leading role in privatization tenders in key industries such as energy, infrastructure and real estate. With its ability to access the rapidly growing customer base of Garanti Bank, Garanti Securities will further increase its business volume and consolidate its position as the leader of the business line.