Available Financing Structures in Turkey

Diferent types of loans and inancial structures can be ofered by Turkish banks to their customers as short, medium- or long-term inancings solutions for a variety of purposes.

In cases where the borrowing customer is a consumer, any inancing to be provided to such customer would additionally be subject to the Consumer Protection Law and its secondary legislation.

In cases where the borrowing customer is a legal entity, loans can be utilised under general standard form loan agreements or under project speciic loan agreements. Project inance and acquisition inance methods can also be adopted and, depending on the necessities of the project in question, the inancing can be provided on a non-recourse, limited recourse or full recourse basis. Depending on the type of loan and other aspects of the inancing, the inancing can be provided as secured or unsecured, revolving or non-revolving, with a ixed or loating interest rate, in local currency and/or foreign currency, by a single lender or a lenders’ syndicate, or as a club loan and so forth.

The collateral structure can vary depending on the characteristics of the project in question, and among other aspects, the type of the borrowing customer, its shareholding structure and the sector in which it is operating. It is worth noting that in an acquisition inancing it is not legally possible to take security over the assets of the target company due to the inancial assistance restriction.
Therefore, when creating the security structure for an acquisition, such restriction should be taken into consideration.

Some of the major banks have special departments only dealing with the services to be provided to the Turkish subsidiaries of foreign capital companies and may have a more lexible and investorfriendly approach in terms of collateral, making it easier for the foreign companies to meet their inancing needs in Turkey.

Other services typically provided by banks to commercial clients in the Turkish market include cash loans, non-cash loans, letters of guarantee and letters of credit, export inance, foreign trade inancing, project inance, derivatives, forward transactions, Eurobonds, government bonds, repo transactions, stock trading, cash management, commercial credit cards, overdraft accounts, spot loans, direct debiting, payment and collection systems.