Hepsiburada Announces the Fourth Issuance of Asset-backed Securities

Rhea-AI Summary

Hepsiburada (NASDAQ: HEPS) has announced its fourth issuance of asset-backed securities amounting to TRY 500 million, which settled on March 12, 2025. The issuance is part of a TRY 2 billion limit approved by the Capital Markets Board through Pasha Yatırım Bank Hepsiburada Varlık Finansmanı Fonu.

The issue is structured in five tranches with an average maturity of 70 days and an annual average interest rate of 42.75%. The company plans to use the funds to grow its Buy Now Pay Later (BNPL) business and reduce working capital impact.

This follows three previous issuances: TRY 150 million in June 2024, TRY 350 million in September 2024, and TRY 450 million in December 2024.

Positive

• Sequential increase in issuance size from TRY 450M to TRY 500M shows growing funding capacity
• Successful completion of fourth consecutive asset-backed securities issuance demonstrates market confidence
• Funds will support BNPL business growth and working capital optimization

Negative

• High interest rate of 42.75% indicates significant borrowing costs
• Short average maturity of 70 days may require frequent refinancing

Insights

Financial Analyst

Hepsiburada's fourth issuance of asset-backed securities worth TRY 500 million represents a significant expansion of their structured financing program. This latest issuance shows progressive scaling in their ABS program, with amounts steadily increasing from TRY 150 million in June 2024 to the current TRY 500 million.

The securities are structured in five tranches with a relatively short 70-day average maturity at a 42.75% annual average interest rate. While this rate appears high by global standards, it must be evaluated within Turkey's high-inflation environment.

The most notable aspect is Hepsiburada's strategic use of its Buy Now Pay Later (BNPL) receivables as the underlying assets. This demonstrates effective monetization of these receivables while simultaneously creating liquidity to fund further BNPL growth - creating a virtuous cycle for this high-margin business segment.

By securitizing these receivables, Hepsiburada is effectively moving them off their balance sheet, which should improve working capital efficiency. This financial engineering approach allows them to accelerate growth in the BNPL segment without proportionally increasing the pressure on their working capital position.

The market's willingness to absorb increasing issuance sizes suggests growing confidence in both Hepsiburada's BNPL portfolio quality and their overall business model, providing validation of their financial strategy and credit risk management capabilities.

ISTANBUL, March 14, 2025 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (d/b/a “Hepsiburada”) (NASDAQ: HEPS), a leading Turkish e-commerce platform, today announced the fourth issuance of asset-backed securities amounting to TRY 500 million.

The fourth issuance of asset-backed securities amounting to TRY 500 million, within the scope of the TRY 2 billion limit given by the Capital Markets Board to Pasha Yatırım Bank Hepsiburada Varlık Finansmanı Fonu, settled on March 12, 2025. In this structure, Hepsiburada participated as the originating entity with respect to its BNPL receivables. The issue consists of five tranches with an average maturity of 70 days and at an annual average interest rate of 42.75%. Hepsiburada intends to use the funds raised through this issue to sustainably grow its BNPL business and reduce its impact on working capital.

This fourth issuance follows a first issuance of asset-backed securities amounting to TRY 150 million, which settled on June 5, 2024, a second issuance of asset-backed securities amounting to TRY 350 million, which settled on September 27, 2024, and a third issuance of asset-backed securities amounting to TRY 450 million, which settled on December 4, 2024.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, and encompasses all statements, other than statements of historical fact contained in this press release. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to” and similar statements. These forward-looking statements are based on management’s current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Hepsiburada’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, potential negative developments resulting from epidemics or natural disasters, other negative developments in Hepsiburada’s business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. For a discussion of additional factors that may affect the outcome of such forward-looking statements, see our 2023 annual report filed with the SEC on Form 20-F on April 30, 2024 (Commission File Number: 001-40553), and in particular the “Risk Factors” section, as well as the other documents filed with or furnished to the SEC by Hepsiburada from time to time. Copies of these filings are available online from the SEC at www.sec.gov, or on the SEC Filings section of our Investor Relations website at https://investors.hepsiburada.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. These forward looking statements should not be relied upon as representing Hepsiburada’s views as of any date subsequent to the date of this press release. All forward-looking statements in this press release are based on information currently available to Hepsiburada, and Hepsiburada and its authorized representatives assume no obligation to update these forward-looking statements in light of new information or future events. Accordingly, undue reliance should not be placed upon the forward-looking statements.

About Hepsiburada

Hepsiburada is a leading e-commerce technology platform in Türkiye, operating through a hybrid model that combines first-party direct sales (1P) and a third-party marketplace (3P) with approximately 100 thousand merchants.

With its vision of leading the digitalization of commerce, Hepsiburada serves as a reliable, innovative and purpose-driven companion in consumers’ daily lives. Hepsiburada’s e-commerce platform offers a broad ecosystem of capabilities for merchants and consumers including last-mile delivery, fulfilment services, advertising solutions, cross-border sales, payment services and affordability solutions. Hepsiburada’s integrated fintech platform, Hepsipay, provides secure payment solutions, including digital wallets, general-purpose loans, buy now pay later (BNPL) and one-click checkout, enhancing shopping convenience for consumers across online and offline while driving higher sales conversions for merchants.

Since its founding in 2000, Hepsiburada has been purpose-driven, leveraging its digital capabilities to empower women in the Turkish economy. In 2017, Hepsiburada launched the ‘Technology Empowerment for Women Entrepreneurs’ program, which has supported nearly 57.5 thousand female entrepreneurs across Türkiye in reaching millions of customers.

Investor Relations Contact
ir@hepsiburada.com

Media Contact
corporatecommunications@hepsiburada.com

FAQ

What is the size and purpose of Hepsiburada's fourth asset-backed securities issuance?

Hepsiburada's fourth issuance amounts to TRY 500 million and aims to grow its BNPL business and reduce working capital impact.

What are the terms of HEPS's latest asset-backed securities issuance in March 2025?

The issuance consists of five tranches with 70 days average maturity and 42.75% annual average interest rate.

How many asset-backed securities has HEPS issued since June 2024?

HEPS has issued four rounds: TRY 150M in June 2024, TRY 350M in September 2024, TRY 450M in December 2024, and TRY 500M in March 2025.

What is the total limit approved for Hepsiburada's asset-backed securities program?

The Capital Markets Board approved a TRY 2 billion limit for the asset-backed securities program.