Identifier: C2T6L1 | Revision: 2026-10-26

Decision and objectives

A lease certificate offers periodic distributions resembling a bond coupon. Identify what generates the cash and which entity owes each obligation before comparing its yield. Economic rate sensitivity can resemble debt while the legal structure differs. A participation-finance label is not a guarantee of payment or immediate asset-sale recovery.

Objectives: Map certificate parties and obligations; Calculate distribution cash; Identify recourse limitations from documents.

Prerequisites: C2T5L6.

Mechanics

A lease certificate is issued through a varlik kiralama sirketi, or asset leasing company, commonly abbreviated VKŞ. The exact structure can involve ownership, management, trade, partnership or another documented arrangement. Identify the certificate issuer, source entity, user of funds, underlying assets or rights, payment obligor and any purchase undertaking or guarantor. Do not assume certificate holders personally own a freely saleable fraction of a building or can enforce directly against every operating asset.

Map the chain in words: investors pay the certificate issuer; proceeds fund the documented assets or transaction; the user or assets generate contractual cash; after permitted expenses, the issuer distributes cash under the certificate terms; redemption follows the documented sale, purchase or other settlement mechanism. Different lease-certificate types can have different recourse and loss allocation. SPK III-61.1 Articles 4–9 describe ownership, management, purchase/sale, partnership and work-contract structures, separately or combined. Article 1(2) excludes Treasury issues under Law 4749 Article 7/A; use their own legal framework rather than importing this private-sector rule.

Price and return drivers

A fixed distribution can be calculated from a nominal base and stated period rate, but its source and enforceability still require the contracts. Present value depends on expected dates, currency, required return, obligor risk and market liquidity. An asset value exceeding nominal does not by itself establish cash available for a scheduled distribution. Timing, security, expenses and enforceability can create a gap.

Worked case

Hypothetical TRY certificate, face TRY 100,000, two equal six-month distribution periods, stated annual distribution basis 12%, principal paid at par after one year. Assume each period's cash is 100,000×0.12/2 = TRY 6,000, all obligations performed, no fees or tax. Investor schedule is TRY 6,000 at month six and TRY 106,000 at month twelve. Total distributions are TRY 12,000; total promised receipts TRY 112,000.

A separate simplified structure ledger for the final period shows cash collected TRY 108,000, permitted administration costs TRY 2,000, available to holders TRY 106,000. This covers the final scheduled amount exactly. The explanation is the cash waterfall, not a claim that the mere existence of an asset ensures the payment.

Adverse case

If final cash collected is only TRY 83,000 with the same TRY 2,000 costs, available cash is TRY 81,000: shortfall to the scheduled 106,000 is TRY 25,000 unless an enforceable additional obligor pays it. Three states clarify the claim: full performance pays 106,000; collection shortfall pays the available 81,000 under the supplied limited-recourse assumption; failed realization pays zero until recovery. Actual documents can create broader or different recourse. Pre-redemption price reflects uncertainty and is not identical to these final payment amounts.

Practical use

Use the particular certificate's prospectus, issue document and contracts to locate asset rights, obligor commitments, payment schedule, default remedies, valuation and sale provisions. Borsa and the historical HMB report identify the structure framework; they do not replace the series documents. Public and restricted offerings both require their own access checks. The example illustrates a domestic structure without asserting a currently available issue. Confirm quote convention, settlement cash, custody, fees and dated tax before purchase.

Decision boundaries

Use only after distinguishing the distribution promise from the source of funds and recourse. Do not equate an asset link with unlimited investor ownership or Treasury backing. Decline when the decision requires guaranteed principal but neither an identified guarantee nor suitable payment obligation exists. A name consistent with an investor's mandate is necessary but insufficient; the actual contracts must satisfy it.

Practice and references

Exercise: hypothetical final collections TRY 220,000; expenses paid first TRY 4,000; scheduled holder distribution and redemption TRY 230,000; limited recourse and no external support. Answer: available TRY 216,000; shortfall TRY 14,000; payment coverage = 216,000/230,000 = 93.9130%. These are fictional collection states, excluding holder tax.

Takeaway: map assets, obligors and the payment waterfall before interpreting a distribution rate.

Reference guide: lease-certificate, lease-distribution, waterfall-cash, Lease certificate, Recourse, VKŞ.

Next: C2T6L2. Topic test: C2T6.

Primary sources (checked 2026-10-26; changing terms require a publication recheck): Borsa Istanbul Debt Securities Market products — Public Debt Instruments; Private Sector Debt Instruments; Lease Certificates; Eurobonds; HMB Public Debt Management Report 2024 — Government Debt Securities; lease certificate definitions; borrowing instruments.

Additional structural sources (checked 2026-10-26): SPK III-61.1, Articles 1 and 4–9; published 2013-06-07, displayed amendment 2016-06-30. Borsa lease-certificate overview, five types and descriptions; publication date not stated, retrieved 2026-10-26. These establish structures, not live availability or unchanged quantitative limits.

Shared reference guide