Maturity Wall

Debt

Turkish: Vade Duvarı

Short definition

A maturity wall is principal and refinancing obligations bunched in a window (e.g. 12–24 months). Total debt can be unchanged while bunching gaps liquidity and refinancing risk.

Detailed explanation

The chart is year-by-year (or quarterly) principal plus uncommitted rollovers. An RCF’s expiry belongs on the wall; if the line does not renew, the drawn balance becomes principal.

Compare the wall with CFADS and headroom. The excess needs a committed take-out, cash or an asset sale. Average life does not flatten a wall.

Why it matters for the CFO

The credit committee and the stress test price this stack. Average DSCR can stay green if the wall is unseen.

How to read it

Wall / annual CFADS shows how many years of cash generation are pledged to that window. There is no universal cap; market and collateral set it.

Numerical example

Gross debt 500 mn TL, principal due in 18 months 280 mn TL → wall = 280 mn TL. Annual CFADS 170 implies a refinancing need larger than 18 months of cash generation.

Related calculators

Güven Sayılgan’s writing on this topic

Read these first

What to learn next

  1. Refinancing Risk
  2. Bullet Loan
  3. Debt Service
  4. Liquidity Headroom
  5. Debt Service Coverage Ratio (DSCR)

Definitions are educational. They are not investment, credit or tax advice.