Recent development

The Turkish Capital Markets Board (the “CMB“) has decided to implement a 50% discount on fees charged in initial and secondary public offerings as well as real estate and lease certificates (i.e., “sukuk”) on June 24, 2016. This measure is an effort to incentivize savings, increase the depth of Turkish capital markets, decrease the cost of financing for Turkish issuers, and create a competitive advantage for Istanbul as an up-and-coming financial center. On June 30, 2016, the CMB also amended its communiqués on shares and lease certificates to grant the CMB the right to determine fees.

What the decision says

  • As a general rule, issuers will now be charged a fee of 0.1% of the issuance value[1] during a public offering, down from 0.2%.
  • During an initial public offering, however, issuers will be charged a fee of 0.05% of the difference between the offering price and the nominal value of the shares, down from 0.1%. A further fee is applied at 0.1% of the nominal value of the shares that are not publicly offered, down from 0.2%.
  • The issuers of real estate certificates will be charged a fee of 0.1% of the issuance value[2] of the certificates, down from 0.2%.
  • The CMB’s discounts will apply to the lease certificates as well:

Discounted rate (% of the issuance value[3] of the certificates)

Previous rate (% of issuance value of the certificates)

Up to 179 days 0.125% 0.25%
180-364 days 0.175% 0.35%
365-730 days 0.025% 0.05%
More than 730 days 0.05% 0.1%


The CMB has determined that Turkish capital markets have instituted the requisite legal infrastructure to compete with other financial hubs; presently, Turkey needs to enhance participation in its capital markets, and the latest measures undertaken by the CMB are significant means of attracting investors. The discounts serve primarily to decrease the equity financing costs for prospective primary and secondary share issuances. In particular, through its discounting of real estate and lease certificates, the CMB aims to position itself as a center for Islamic finance, stimulating the funding of mega projects through Islamic financial instruments. Considering the recent real estate market boom in Turkey, the securitization of these particular assets symbolize the emerging integration of the real estate sector into the financial sector, a union with great potential.