The CMB, following the registration of the first ever offering
of asset covered bonds (the "ACBs"), has revised the
legal provisions governing ACBs. The filing made by
Şekerbank T.A.Ş., an ISE traded Turkish deposit
bank, for issuance of ACBs in the amount of TL 800,000,000 has
granted the CMB a chance to review and fine tune the legal
framework which has not been practiced since its promulgation in
2009. The recently issued Amendment has put a strong emphasis on
investor protection and diversified the issuer base.
Below is a brief highlight of the key aspects of the
Amendment:
- Factoring companies are included in the list of entities that
may issue ACBs and thus, have obtained an additional funding option
for their activities. In line with the above, receivables arising
from all type of factoring transactions has been classified as
cover assets for ACB offerings conducted by factoring
companies.
