APPLICATION AND LISTING CRITERIA FOR PRIVATE SECTOR DEBT INSTRUMENTS

 

In order to ensure that debt instruments are traded at Stock Exchange, applications to be filed with Stock Exchange for listing/registration are filed concurrently with the registration application to be filed with CMB.

Without prejudice to regulations regarding Mortgage-Backed Securities (MBS) and Securities based on Mortgage (SBM), application at Stock Exchange can be filed;

a) in a way that will cover all debt instruments to be issued within one year or

b) for a one time only issue that covers a certain amount.

The method used for application at CMB as described in clauses (a) and (b) above must be used for application to be filed with Stock Exchange.

Before selling by the issuers of debt instruments which have been included in respective listing/registration for issuance within one year under a resolution of Board of Directors of Stock Exchange, trading application is filed with Stock Exchange concurrently with the application to be filed with CMB.

Debt instruments which have been included in listing/registration for issuance within one year under resolution of Board of Directors of Stock Exchange and which have been sold start to be traded at Bonds and Bills Market following announcement made through Public Disclosure Platform (PDP).

Issue Criteria 
- The application must refer to the entirety of the series,
- The nominal value of the issue must be at least TRY 1,220,000,
- The entire amount of the issue must have been put to sale via public offering.

Operating Term Criterion
Minimum 3 calendar years must have elapsed since its establishment date (2 years if free float ratio is at least 25%).

Audit Criterion 
The financial statements and independent audit reports of the company must have been submitted to the Exchange.

Profitability Criterion
Profits before tax must have been earned as evidenced by its financial statements relating to the last 2 years prior to the application date (it must have earned profits in the last year if free float ratio is at least 25%).

Shareholders’ Equity Criterion
The total  shareholders’ equity in the last independently audited financial statement of the corporation must be at least TRY 1,950,000.

Sound Financial Structure Criterion 
The Exchange management must have had the corporation’s financial structure examined and accepted its ability to continue as an ongoing concern

Also, 
- The corporation’s legal situation in terms of its establishment and activities as well as the legal situation of its securities representing indebtedness must be documented to verify their compliance with the respective legislation,
- The corporation’s articles of association must not include any provisions restricting the transfer and circulation of the securities to be traded on the Exchange or preventing the shareholders from exercising their rights.
 
For the listing of convertible bonds, in addition to the listing requirements of bonds, the stocks to be exchanged with bonds should be listed either on the exchange. However, if the Exchange Management had a clear indication that the investors have enough information regarding the price of the stocks to create an opinion this condition might not be sought.

Application procedure for the listing of stocks also prevails for that of private sector bonds on İMKB.

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