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Legal Alerts

CMB Continues to Facilitate Mortgage Finance Company Issuances

Legal Alerts
Capital Markets
Financial Institutions

Recent Developments

The Amendments to the Communiqué on Debt Securities No. VII-128.8 (”Debt Securities Communiqué”) and the Communiqué on Asset-Backed and Mortgage-Backed Securities No. III-58.1  (”ABS Communiqué”) entered into force through their publication in the Official Gazette No. 31154 dated June 13, 2020.

The Amendments are in line with the amendments made in the Covered Bonds Communiqué No.  III-59.1 on May 14, 2020 (Changes to the Covered Bonds Communiqué), which reflects the approach set forth by the 11th Development Plan for 2019-2023 and the Presidency Annual Program for 2020 for issuances made by mortgage finance institutions (”MFIs”).

What’s New?

Issuance Ceiling Limits

  • The issuance ceiling limit in the Debt Securities Communiqué will not be applicable to the debt securities issued by MFIs.
  • The limits applicable for the calculation of the issuance ceiling under the ABS Communiqué will not be applicable to the asset-backed and mortgage-backed securities (”ABS” and ”MBS”, respectively) issued by MFIs or funds established by MFIs.

CMB Fee Rates

  • The Capital Markets Board (”CMB”) fee rates set forth in the Debt Securities Communiqué will be zero until December 31, 2021 for debt securities issuances to be made by MFIs. As of January 1, 2022, half of the CMB fee rates set forth in the Debt Securities Communiqué will apply for these issuances.
  • In ABS and MBS issuances to be made by MFIs, half of the CMB fee rates set forth in the ABS Communiqué will apply. However, the CMB fee rates will be applied as zero per thousand until December 31, 2021.


Considering the potential economic effects of the COVID-19 outbreak, the CMB reduces MFIs’ issuance costs and lifts ceiling to further incentivize their issuances. In this respect, while the CMB invites MFIs to take a more active role in vulnerable economic conditions, it also provides them with a functional support mechanism through the abovementioned exemptions.

Please stay up to date with COVID-19 related legal developments through the Esin Attorney Partnership Coronavirus Helpdesk.