NEWSLETTER-2017

223 CAPITAL MARKETS LAW Although this option is no longer available for financial leasing, factoring, and financing companies, calculated issue limits may be in- creased by one hundred percent for banks that have a long-term rating, subject to request, and corresponding to the highest three investment- grade levels. If the issuer’s investment-grade levels fall below this level, the issuer must notify the Board of the upgrade of the issue limit. The provision that regulates the additional issue limit equivalent of fifty percent may be granted in cross-border issuances of banks, financial institutions, financial leasing, factoring, and financing com- panies upon the request of the issuer, and approval of the Board has also been abolished without any distinction. Following the amendment, the nominal amount of the issuer’s (i) debt securities that are outstanding or unsold within the issue limit, (ii) collateralized securities and (iii) lease certificates based on trading or outstanding management agreement in which the payments are not guaranteed, and the issuer is the fund-user, shall be taken into consid- eration as a discount item in the calculation of issue limits, including cross-border issuances. Discount amounts in cross-border issuances fulfilled over foreign currencies shall be calculated over the indica- tive exchange selling rate, as well as relevant cross rate or informative exchange rates of selected currencies that are not subject to transaction announced by the Central Bank of the Republic of Turkey (“CBRT”) on the date of application to the Board regarding the issue limit. In addition, the provision regulating that debt securities shall not be sold domestically through public offering or private placement if half or more of the capital and legal reserves are eroded in financial statements that are taken into consideration while calculating the issue limit has been abolished to provide flexibility to the issuers. Finally, provisions of this Communiqué regarding issue limits shall not apply in respect of debt securities issued for cross-border sales with the purpose to ensure the financing or re-financing of the relevant project or business within the scope of the Law on Construc- tion of Facilities, Renovation of Existing Facilities and Purchasing Service by the Ministry of Health by Public Private Partnership Model dated 21.02.2013 and numbered 6428.