Important Changes Regarding Debt Securities

After considering the matter for some time, the Capital Markets Board (“CMB”) amended Debt Securities Communiqué (II.31.1) by publishing Communiqué (II-31.1a) in Official Gazette No. 29983 on 18 February 2017, which immediately entered into force.

The new Communiqué has simplified the procedures to be followed for of debt securities issues in foreign countries, and changed the calculation method for issue limits. This Communiqué did not include the controversial and strict rules regarding compulsory credit ratings and the requirement to provide bank guarantees, which had been proposed in the draft Communiqué published in late 2015. As an exciting development, the new Communiqué provides that issue limits will not be applied to the issue of cross- border debt securities in financing of city hospitals under the public- private partnership model.

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