A Fresh Regulatory Approach To Convertible Bonds

Issuance of New Rules

Turkish Companies are facing difficulties in tapping into sources of credit as global financial crisis gets deeper. Banks have felt threatened by the increase of non-performing loans and have adopted a more cautious approach in funding companies. On a parallel scale, opportunities for raising capital through stock offerings have reduced. A recent IPO initiative was cancelled during the book building process due to lack of investor interest and the upcoming IPOs are postponed for an indefinite period. In addition, shareholders have shown strong reluctance to participate in rights issues of listed corporations, especially, of those traded below par value. Private placements to controlling shareholders have been considered as a way out for companies seeking cash contribution. However, those shareholders are also suffering from the impacts of global financial crisis and their resources are limited for supporting their affiliates. In this environment