Opportunity for BES companies to sell bonds to the TCMB

The Central Bank of the Republic of Turkey (TCMB) will allow the sale of bonds in companies' portfolios to the TCMB after the regulation that increased the weight of stocks and decreased the weight of bonds in the state contribution portfolio in the individual retirement system. Following the regulation that transformed the weights in the state contribution portfolio in the individual retirement system, the Central Bank of the Republic of Turkey (TCMB) took the bond step. In the letter sent to banks by the TCMB and seen by Bloomberg HT, it was stated that the DİBS and lease certificates issued by the Undersecretariat of Treasury Asset Leasing Joint Stock Company, which are included in the portfolios of companies within the scope of the BES regulation, will be allowed to be sold to the TCMB through banks through tender or quotation methods. In this context, the price in direct purchases to be made by quotation method will be determined and announced by the TCMB. The quotation window will be announced at 15:00 with a value date one business day later, and quotation offers will be received between 15:00-16:00. Quotation offers will be submitted as 1 million TL and multiples. According to the article, no quotation offer will be entered for funds/customers/portfolios other than state contribution and participation contribution funds, and the company on whose behalf the offer will be made will be communicated to the TCMB in writing. Considering that the state contribution in the system is 50 billion TL, it is anticipated that this operation will create a monetary expansion of 10 billion TL.