Second Hand Lease Certificate
You can apply for Turkish Lira lease certificates issued by Albaraka Türk Participation Bank Inc. through asset leasing company Bereket VKŞ both via our branches and from our Internet branch. If you have an investment account opened within Albaraka Türk, you can utilize your savings in lease certificates at current rates; If you do not have an investment account, you can make transactions by opening an investment account also via the "Investment" menu in our Internet Branch.
What is a Lease Certificate?
A lease certificate is a capital market instrument in accordance with the principles of interest-free banking issued by asset leasing companies in order to finance all kinds of assets or rights. Investors who purchase a lease certificate earn income from the underlying assets or rights subject to issuance at the rate of their shares.
What are the Features of Lease Certificates?
- Lease certificates can be fixed or variable yield.
- Investors who have lease certificates issued by our bank may sell some or all of these securities back to our bank under market conditions before their maturity.
- In fixed yield lease certificate issuances, the yield is determined in advance. In this way, investors who purchase lease certificates can know in advance the amounts that will be transferred to their accounts at the end of the maturity. It should be noted that the yield rates of lease certificate issuances will vary on an issuance basis.
- Tangible underlying assets are used in issuances.
How to Purchase a Lease Certificate?
You can apply for Turkish Lira lease certificates issued by Albaraka Türk Participation Bank Inc. through asset leasing company Bereket VKŞ via our mobile and Internet branch, or by stopping by the nearest Albaraka Türk Branch.
If you have an investment account opened within Albaraka Türk, you can utilize your savings in lease certificates at current rates; If you do not have an investment account, you can make transactions by opening an investment account also through the "Investment Transactions" menu in our Mobile and Internet Branch.
The lease certificates issued by our bank can be purchased directly from the issuance or from the secondary markets.
- Purchase from Issuance
Announcements regarding the lease certificate issuances, demand collection and issuance dates are made through our branches. You can contact our branches for the lease certificate issuance calendar.
You can apply for a lease certificate through our branches or through our Internet branch. Our customers who want to participate in our lease certificate issuance through our Internet branch will be able to carry out their transactions by following the steps below.
Investment – Lease Certificate – Lease Certificate New Application
New Application Lease Certificate applications to be made through Internet branch can be made until 16:00 on the last day of the announced demand collection date.
- Purchase from Secondary Market
Our bank offers lease certificates in its possession with various maturity and yield structures to its customers in secondary markets. You can visit our branches to purchase a lease certificate from the secondary market and make transactions via the Internet or Albaraka Mobile. Our customers who want to purchase a lease certificate from secondary markets through Internet banking can carry out their transactions by following the steps below.
Investment – Lease Certificate – Purchase
You can carry out your lease certificate transactions in secondary markets between 10:30 and 16:00.
- Do You Need an Investment Account to Invest in a Lease Certificate?
Since lease certificates are securities, they can only be kept in investment accounts. For this reason, investors who want to purchase a lease certificate must have an investment account. Customers who do not have an investment account can open an investment account through our branches, Internet or mobile branch.
What are the Benefits of Investing in a Lease Certificate?
- Lease certificates allow investors to make short, medium and long-term fixed or variable yield investments.
- There are underlying assets on the basis of lease certificates. Investors who purchase lease certificates receive yield on the assets and rights that are the basis of issuance at the rate of their shares.
- Lease certificates are liquid assets. Therefore, investors holding lease certificates can sell these assets back to our bank during trading hours. Our lease certificates traded in Istanbul Stock Exchange can also be traded in these markets.
- Lease certificates issued by our Bank can be used as collateral. Investors who hold these assets in their portfolios can obtain financing from our bank by providing their lease certificates as collateral. Withholding tax deduction for the earnings of Joint Stock Company, Limited Liability Company and Limited Partnership Company investors from lease certificates is 0%. Therefore, our Bank does not make withholding tax deductions from investors in this segment in amortization payments. The relevant earnings are subject to corporate tax and are paid by the asset owner based on declaration. In the other investor group, withholding taxes are as follows.
New Rate
(For lease certificates purchased between 23.12.2020 - 31.12.2020)
0-6 Months : 5.00%
6 -12 Months : 3.00%
More than 1 Year : 0.00%
Click here to examine the taxation principles of lease certificates in more detail.
Note: The relevant rates may be changed by the Ministry of Treasury and Finance.
What are the differences between Lease Certificate (Sukuk) and Bond?
Lease Certificate (Sukuk)
- It is not a debtor-creditor relationship. It is a capital market instrument that represents the shares and rights of investors in certain designated assets, projects or services.
- There is a requirement to underlie a material asset at a minimum rate of 33%.
- Although not of all types of sukuk, the issuance provides ownership rights to the investor on the underlying assets and rights.
- Not guaranteed by the issuer.
- Issuance is carried out according to the Principles of Interest-free Banking-the Rules of Islamic Finance- appropriate purposes
- Investors are affected by such underlying assets or the performance of projects at the rate of their shares.
Bill
- It is a capital market instrument representing the debt of the issuer.
- There is no underlying asset.
- Since underlying asset is not used, there is no ownership right or binding on collateral. Investors demand their receivables directly from the issuer.
- Guaranteed by the issuer.
- Can be issued without a purpose in accordance with a rule or principle.
- Since there are no underlying assets, investors are only affected by the financial status of the issuer.
What Is the Difference Between Issuing Lease Certificates for Qualified Investors and Issuing Initial Public Offering Lease Certificates?
Issuances are carried out in Turkish Lira at home - or in foreign currency abroad for qualified investors or in the form of an initial public offering. While only investors who meet the requirements of qualified investors can participate in the issuance for qualified investors, any investor who meets the minimum participation amount can participate in the issuance of initial public offering lease certificates. Issuances for qualified investors can also be made on an allocated basis to include a limited number of customers. According to the CMB communiqué, investors with the following qualifications are defined as qualified investors. According to the relevant communiqué of the CMB;
- Intermediary institutions, banks, insurance companies, portfolio management companies,
- Housing and asset finance funds, asset leasing companies, asset management companies
- Pension and support funds, foundations, public institutions Natural and legal persons holding Turkish and/or foreign currency and capital market instruments worth at least TL 1 million as of the date of issuance of capital market issuance instruments (for legal persons, organizations that carry at least two of following criteria: having an asset total of 50,000,000 Turkish Liras, an annual net income of 90,000,000 Turkish Liras, and an equity capital of more than 5,000,000 Turkish Liras. ) are defined as qualified investors.
Is The Lease Certificate (Sukuk) a Type of Financing in accordance with the Rules of Islamic Finance?
You can reach the conformity-ratification document issued by our bank's advisory board regarding the lease certificate product issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) by clicking here.
How is the Yield Ratio of Lease Certificates Determined?
Our Bank determines the yield ratios on lease certificate issuances taking into account the market conditions of that day and announces them to investors before issuance.
How is the Yield Amount of Lease Certificates Calculated?
You can access the calculation module by clicking here to calculate the yields of lease certificates.
How Are Payments Transferred to the Account at the End of the Maturity?
Coupon or principal payments on lease certificates are automatically transferred to the current account of the investor at the end of the maturity. Investors do not need to make any transactions at the end of the maturity. If customers want to continue to utilize their investments on the lease certificate at the end of the maturity, they must make a demand again.
For Whom Can Lease Certificates Be Issued?
Lease certificates can be issued for Qualified Investors or by Initial Public Offering method. While only "Qualified Investors" can participate in the issuances made for qualified investors, "Everyone" can participate in the issuances made by Initial Public Offering method.
Who is a Qualified Investor?
Qualified investor refers to investment funds, pension investment funds, securities investment partnerships, venture capital investment partnerships, real estate investment partnerships, intermediary institutions, banks, insurance companies, private financial institutions, portfolio management companies, pension and support funds, foundations, funds established in accordance with provisional article 20 of the Social Insurance Law No. 506, public benefit associations and other investors to be determined by the Board that they are similar to these institutions in terms of their qualifications and natural and legal persons holding Turkish and/or foreign currency and capital market instruments worth at least TL 1 million as of the date of the initial public offering of the fund participation shares.
Houses, cars, lands, fields etc. assets are not included in this calculation because they are not liquid.
What are the Types of Lease Certificate (Sukuk)?
In article 4 of the Capital Market Board's Lease Certificates Communiqué, the types of lease certificates are listed as follows: a- Based on The Management Agreement b- Based on Trade c- Based on Ownership d- Based on Partnership e-Based on Works Contract