Critical Changes For Turkish High Yield Bonds

Recent development

On November 27, 2015, the Capital Markets Board (the "CMB") published draft amendments to the current Debt Instruments Communiqué (the "Draft Communiqué"). Under the Draft Communiqué, issuers will be required to demonstrate greater financial strength than previously required or, alternatively, provide payment guarantees. The Draft Communiqué is available on the CMB's website for public comment until December 18, 2015.

What the CMB proposes

If the CMB adopts the Draft Communiqué in its current form, new rules will apply to the domestic and cross-border issuance of debt instruments:

• An issuer must obtain a credit rating for domestic debt issuances and maintain that rating for further debt issuances under the same CMB approval.