Mondaq "Turkey: Project Finance Comparative Guide"
1 Legal framework1.1 Beyond general commercial and contract laws what other specific laws and regulations govern project finance transactions in your jurisdiction?
Project finance transactions – comprising loan agreements, security agreements, and ancillary documents – are subject to the following laws:
- the Law of Obligations (6098);
- the Commercial Law (6102); and
- the Civil Law (4721).
The Capital Markets Law (6362) and its secondary legislation might also apply if the borrower or any security provider is a public company.
In February 2020, a new project financing scheme was introduced by the legislature. This scheme creates an alternative project financing method through the establishment of project financing funds by investment corporations or portfolio management companies. Project financing funds enable project companies to raise funds through third-party investments as remuneration for project assets and project revenues backed by securities. This new method is regulated under the Capital Markets Law and the Capital Markets Board is preparing secondary legislation on the establishment of such funds, the requirements for founders, details on the issuance of securities and so on.