Derivative financial instruments (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Fair Value of Derivative Financial Instruments

The fair value of derivative financial instruments at 31 December 2020 and 2019 are attributable to the following:


	31 December 2020		31 December 2019
	Assets	Liabilities	Assets	Liabilities
Held for trading	360,047	41,132	443,880	72,539
Derivatives used for hedging	642,623	66,851	483,448	—
Total	1,002,670	107,983	927,328	72,539

Summary of swap, option and forward contracts

The notional amount and the fair value of participating cross currency swap and cross currency swap contracts for hedging purposes at 31 December 2020 are as follows:


Sell		Buy
Currency	Notional amount	Currency	Notional amount	Fair Value	Maturity
Participating cross currency swap contracts
TL	1,903,692	EUR	366,800	221,937	23 October 2025
TL	239,107	EUR	48,012	17,202	22 April 2026
TL	118,650	EUR	17,146	35,940	22 April 2026
TL	224,536	USD	40,010	55,830	22 April 2026
TL	220,055	USD	40,010	42,674	22 April 2026
TL	184,622	USD	32,008	42,554	22 April 2026
TL	159,500	USD	28,007	42,068	22 April 2026
TL	156,999	USD	24,006	14,793	22 April 2026
TL	125,231	USD	20,005	27,096	22 April 2026
TL	92,887	USD	16,004	17,169	22 April 2026
TL	85,206	USD	16,004	28,131	22 April 2026
Cross currency swap contracts
TL	99,127	RMB	162,121	97,229	22 April 2026
Derivatives used for hedge accounting financial assets				642,623

EUR 414,812 participating cross currency swap contracts includes TL 1,121,303 guarantees after the CSA agreement.

Interest rate swap contracts

The notional amount and the fair value of interest rate swap contracts for hedging purposes at 31 December 2020 are as follows:


Sell		Buy
	Notional		Notional
Currency	amount	Currency	amount	Fair Value	Maturity
Interest rate swap contracts
USD	80,020	USD	80,020	(31,749)	22 April 2026
USD	40,010	USD	40,010	(15,112)	22 April 2026
USD	32,008	USD	32,008	(10,656)	22 April 2026
USD	28,007	USD	28,007	(9,334)	22 April 2026
Derivatives used for hedge accounting financial liabilities				(66,851)

Held for trading

Cross currency swap, participating cross currency swap, FX swap and interest rate swap contracts

The notional amount and the fair value of cross currency swap, participating cross currency swap, FX swap and interest rate swap contracts for hedging purposes at 31 December 2020 are as follows:


Sell		Buy
Currency	Notional amount	Currency	Notional amount	Fair Value	Maturity
Cross currency swap contracts
TL	45,504	EUR	7,200	20,853	23 September 2021
TL	99,154	USD	17,143	31,140	20 March 2023
TL	98,537	USD	17,143	31,575	20 March 2023
TL	30,707	RMB	38,801	14,535	22 April 2026

Participating cross currency swap contracts
TL	218,295	EUR	32,008	67,361	22 April 2026
TL	148,117	EUR	24,006	62,688	22 April 2026
TL	146,677	EUR	24,006	80,075	22 April 2026
TL	73,747	EUR	10,861	19,909	22 April 2026
TL	98,295	USD	16,004	13,356	22 April 2026
TL	95,944	USD	16,004	17,978	22 April 2026

FX swap contracts
TL	73,135	USD	10,000	319	6 January 2021

Interest rate swap contracts
USD	17,778	USD	17,778	258	29 September 2028
Held for trading derivative financial assets				360,047

FX swap, interest swap and participating cross currency swap contracts

The notional amount and the fair value of FX swap, interest swap and participating cross currency swap contracts for hedging purposes at 31 December 2020 are as follows:


Sell		Buy
Currency	Notional amount	Currency	Notional amount	Fair Value	Maturity
FX swap contracts
EUR	5,000	USD	6,116	(148)	5 January 2021
EUR	33,000	USD	40,075	(3,148)	12 January 2021
TL	186,488	USD	25,000	(2,851)	6 January 2021
TL	73,865	USD	10,000	(411)	6 January 2021
RMB	10,500	USD	1,544	(488)	13 January 2021

Interest swap contracts
USD	22,222	USD	22,222	(1,141)	29 September 2028

Participating cross currency swap contracts
TL	195,850	USD	25,000	(3,811)	20 November 2025
TL	155,340	USD	20,000	(5,890)	20 November 2025

Cross currency swap contracts
TL	188,851	EUR	19,900	(11,663)	2 December 2021
TL	224,100	EUR	24,000	(2,021)	21 December 2022
TL	154,600	USD	20,000	(6,747)	20 November 2025
Total held for trading derivative financial liabilities				(38,319)

Currency forward contracts

The notional amount and the fair value of currency forward contracts for trading purposes at 31 December 2020 are as follows:


Buy
	Notional
Currency	amount	Fair Value	Maturity
USD	500	(194)	31 January 2021
USD	500	(212)	28 February 2021
USD	500	(216)	31 March 2021
USD	500	(221)	30 April 2021
USD	500	(226)	29 May 2021
USD	500	(232)	30 June 2021
USD	500	(237)	31 July 2021
USD	500	(242)	31 August 2021
USD	500	(250)	30 September 2021
USD	500	(253)	30 October 2021
USD	500	(262)	30 November 2021
USD	500	(268)	31 December 2021
Held for trading derivative financial liabilities		(2,813)

Derivatives used for hedging

Participating cross currency swap and cross currency swap contracts

The notional amount and the fair value of participating cross currency swap and cross currency swap contracts for hedging purposes at 31 December 2019 are as follows:


Sell		Buy
Currency	Notional amount	Currency	Notional amount	Fair Value	Maturity
Participating cross currency swap contracts
TL	1,820,280	EUR	433,400	148,066	23 October 2025
TL	257,478	EUR	56,004	7,675	22 April 2026
TL	85,593	USD	18,668	21,581	22 April 2026
TL	145,000	USD	50,000	97,030	16 September 2020
TL	128,833	USD	33,333	57,280	16 September 2020
TL	97,833	USD	33,333	63,358	16 September 2020
TL	64,667	USD	16,667	28,394	16 September 2020
TL	245,951	USD	46,670	9,893	22 April 2026

Cross currency swap contracts
TL	115,628	RMB	189,107	50,171	22 April 2026
Derivatives used for hedge accounting financial assets				483,448

EUR 489,404 participating cross currency swap contracts includes TL 833,786 guarantees after the CSA agreement.

Held for trading

Cross currency swap, participating cross currency swap, FX swap and option contracts

The notional amount and the fair value of cross currency swap, participating cross currency swap, FX swap and option contracts for hedging purposes at 31 December 2019 are as follows:


Sell		Buy
Currency	Notional amount	Currency	Notional amount	Fair Value	Maturity
Cross currency swap contracts
TL	242,873	USD	70,500	178,968	16 September 2020
TL	269,451	USD	70,500	148,452	22 December 2020
TL	137,952	USD	24,000	5,625	20 March 2023
TL	138,816	USD	24,000	5,044	23 March 2023
TL	84,224	EUR	15,040	10,691	23 September 2021
TL	91,008	EUR	14,400	5,141	23 September 2021
TL	35,818	RMB	45,259	944	22 April 2026
Participating cross currency swap contracts
TL	172,772	EUR	28,002	9,904	22 April 2026
TL	171,092	EUR	28,002	21,355	22 April 2026
TL	227,750	EUR	37,336	8,705	22 April 2026
TL	77,520	EUR	12,000	1,097	16 September 2020
TL	261,912	USD	46,670	12,195	22 April 2026
TL	108,349	USD	18,668	3,930	22 April 2026
TL	135,051	USD	23,335	4,674	22 April 2026
TL	215,354	USD	37,336	7,813	22 April 2026
TL	174,000	USD	30,000	1,506	15 June 2026
TL	186,050	USD	32,669	9,936	22 April 2026
FX swap contracts
USD	20,000	TL	117,860	67	27 February 2020
USD	20,000	TL	117,900	51	27 February 2020
Option contracts
EUR	25,000	USD	28,038	186	3 January 2020
USD	50,000	TL	275,000	11	3 January 2020
Held for trading derivative financial assets				436,295

Currency forward contracts

The notional amount and the fair value of currency forward contracts for trading purposes at 31 December 2019 are as follows:


Buy
Currency	Notional amount	Fair Value	Maturity
USD	30,000	2,081	28 February 2020
USD	7,500	952	30 March 2020
USD	7,500	916	29 June 2020
USD	10,000	1,038	30 March 2020
USD	10,000	1,016	29 June 2020
USD	7,500	797	30 March 2020
USD	7,500	785	29 June 2020
Held for trading derivative financial assets		7,585

FX swap, interest swap and participating cross currency swap contracts

The notional amount and the fair value of FX swap, interest swap and participating cross currency swap contracts for hedging purposes at 31 December 2019 are as follows:


Sell		Buy
Currency	Notional amount	Currency	Notional amount	Fair Value	Maturity
FX swap contracts
EUR	50,000	USD	55,488	(3,005)	07 January 2020
EUR	75,000	USD	83,232	(4,512)	07 January 2020
EUR	175,000	USD	194,560	(8,508)	08 January 2020
EUR	50,000	USD	55,588	(2,432)	08 January 2020
EUR	50,000	USD	55,588	(2,434)	08 January 2020
EUR	85,000	USD	94,397	(4,748)	08 January 2020
EUR	90,000	USD	100,492	(2,301)	21 January 2020
EUR	20,000	USD	22,332	(510)	21 January 2020
EUR	175,000	USD	195,346	(4,875)	22 January 2020
EUR	50,000	USD	55,825	(1,448)	28 January 2020
EUR	70,000	USD	78,154	(2,036)	28 January 2020
EUR	90,000	USD	100,484	(2,612)	28 January 2020
EUR	50,000	USD	55,825	(1,448)	28 January 2020
TL	11,211	USD	1,860	(3)	28 February 2020
Interest swap contracts
USD	93,340	USD	93,340	(7,802)	22 April 2026
USD	46,670	USD	46,670	(3,101)	22 April 2026
USD	37,336	USD	37,336	(959)	22 April 2026
USD	32,669	USD	32,669	(849)	22 April 2026
Participating cross currency swap contracts
TL	105,848	USD	18,668	(14,265)	22 April 2026
TL	162,552	USD	28,002	(4,691)	22 April 2026
Total held for trading derivative financial liabilities				(72,539)

Summary of Fair Value of Financial Assets and Financial Liabilities


	Fair values
	31 December	31 December	Fair Value
	2020	2019	hierarchy	Valuation Techniques
a) Participating cross currency swap contracts (*)	797,060	495,436	Level 3	Pricing models based on discounted cash Present value of the estimated future cash flows based on unobservable yield curves and end period FX rates
-Held for trading	251,666	62,159
-Derivatives used for hedging	545,394	433,277


b) FX swap, currency, interest swap and option contracts	100,440	351,768	Level 2	Present value of the estimated future cash flows based on observable yield curves and end period FX rates
-Held for trading	70,062	301,597
-Derivatives used for hedging	30,378	50,171


c) Currency forward contracts	(2,813)	7,585	Level 2	Forward exchange rates at the balance sheet date
-Held for trading	(2,813)	7,585

(*)Since the bid-ask spread is unobservable input; in the valuation of participating cross currency swap contracts, prices in the bid- ask price range that were considered the most appropriate were used instead of mid prices. If mid prices were used in the valuation the fair value of participating cross currency swap contracts would have been TL 168,882 lower as at 31 December 2020 (31 December 2019: TL 116,684).

Summary of Financial Assets and Financial Liabilities Measured and Recognised at Fair Value

The following tables present the Group’s financial assets and financial liabilities measured and recognized at fair value at 31 December 2020 and 2019 on a hedge accounting basis:

Fair values

Change in

intrinsic

Change in

value of

outstanding

hedging item

hedging

used to

instruments

determine

Nominal

31 December

Fair Value

Hedge

since 1

hedge

Currency

Value

Maturity Date

2020

2019

hierarchy

Ratio

January

effectiveness

Participating cross currency swap contracts

EUR Contracts

366,800

23 October 2025

221,937

148,066

Level 3

1:1

968,122

(968,122)

EUR Contracts

65,158

22 April 2026

53,142

7,675

Level 3

1:1

161,325

(161,325)

USD Contracts

—

16 September 2020

246,062

Level 3

1:1

1,570

(1,570)

USD Contracts

216,054

22 April 2026

270,315

31,474

Level 3

1:1

340,553

(340,553)

Cross currency swap contracts

CNY Contracts

162,121

22 April 2026

97,229

50,171

Level 2

1:1

46,858

(46,858)

Interest rate swap contracts

USD Contracts

180,045

22 April 2026

(66,851)

—

Level 2

1:1

—

Fair values

Change in

intrinsic

Change in

value of

outstanding

hedging item

hedging

used to

instruments

determine

Nominal

31 December

Fair Value

Hedge

since 1

hedge

Currency

Value

Maturity Date

2019

2018

hierarchy

Ratio

January

effectiveness

Participating cross currency swap contracts

EUR Contracts

433,400

23 October 2025

148,066

208,462

Level 3

1:1

293,774

(293,774)

EUR Contracts

56,004

22 April 2026

7,675

64,670

Level 3

1:1

36,344

(36,344)

USD Contracts

133,333

16 September 2020

246,062

394,975

Level 3

1:1

61,424

(61,424)

USD Contracts

46,670

22 April 2026

9,893

—

Level 3

1:1

15,215

(15,215)

USD Contracts

18,668

22 April 2026

21,581

9,234

Level 3

1:1

13,436

(13,436)

Cross currency swap contracts

CNY Contracts

189,107

22 April 2026

50,171

53,583

Level 2

1:1

19,172

(19,172)

Interest rate risk and currency risk [member]

Statement [LineItems]

Summary of Cash Flow Sensitivity Analysis for Variable Rate Instruments


	Profit or Loss		Equity, net of tax
	100 bp	100 bp	100 bp	100 bp
	increase	decrease	increase	decrease
31 December 2020
Participating cross currency swap contracts	1,158,627	849,915	(516,772)	(247,934)
Cross currency swap contracts	49,843	45,528	11,132	12,642
Cash Flow sensitivity (net)	1,208,470	895,443	(505,640)	(235,292)


	Profit or Loss		Equity, net of tax
	100 bp	100 bp	100 bp	100 bp
	increase	decrease	increase	decrease
31 December 2019
Participating cross currency swap contracts	376,920	519,967	(102,693)	(180,974)
Cross currency swap contracts	17,631	16,516	(16,644)	(18,114)
Cash Flow sensitivity (net)	394,551	536,483	(119,337)	(199,088)

Participating cross currency swap contracts [member]

Statement [LineItems]

Summary of Fair Value of Derivative Financial Instruments

Movements in the participating cross currency swap contracts for the years ended 31 December 2020 and 31 December 2019 are stated below:


	31 December	31 December
	2020	2019
Opening balance	495,436	653,142
Cash flow effect	(695,892)	(582,580)
Total gain/loss:
Gains recognized in profit or loss	997,516	424,874
Closing balance	797,060	495,436