by on 30 April 2017

Turkey’s main stock exchange Borsa Istanbul is working on new financial instruments that will bring higher yields for lower risks and be based on several unusual products including popular TV series, car manufacturing projects and construction projects, the bourse’s head has said.

In a meeting with a group of journalists on Wednesday, Borsa Istanbul Chair Himmet Karadağ said the bourse was working on new financial instrument models to share their yields with investors, including popular TV series and bridge projects.

“We want to sell prestigious projects. We are working on several models including popular TV series and bridges, through which we can share yields with investors. We also want to list Eurobond transactions in Borsa Istanbul,” he said.

Karadağ noted that they already started holding meetings to realize new financing models.

“We will sell cars for instance. I mean we will sell bonds, which will be used to finance a car project,” he said, adding that investors will be able to invest in a car project set to be held in Turkey.

“There are other industries with which we are in talks,” added Karadağ.

He noted that the bourse’s executives met a number of TV series producers to discuss such deals. Among them were the producers of “Diriliş Ertuğrul,” (The Revival: Ertuğrul), a period drama about the 13th century Oghuz Turkic figure Ertuğrul, the father of the founder and namesake of the Ottoman dynasty, Osman I, who established and ruled the Ottoman Empire. The series is broadcast on the state-run TRT.

“For instance, let’s presume that we will sell TV series which will be broadcast in a minimum of 40 episodes with high ratings. Let’s assume that there is an ‘X’ TV series, which will be broadcast on a TV channel for a two-year period, and the TV channel will pay 2 million Turkish Liras for each episode to the production company. This model will be like hybrid bonds. There is an 80 lira worth product in our example. Let’s assume we will sell half of it after discounted cash flows and other processes. Investors who buy these ‘bonds’ will take a constant yield as well as maybe secondary yields, which will be based on ratings or foreign sales of this TV production at the end of the due date. The modelling is quite good, but we are now working to make it more predictable,” added Karadağ.

He added that works were underway to promote real estate bonds, which were issued for the first time by the country last month.

Istanbul DHA