T.R. Prime Ministry Undersecretary of Treasury sells to retail investors Gold Bonds and Gold Lease Certificates with the aim of diversification of borrowing instruments and investor base.
The investors can apply for the issues by physical gold of 22K and 24K. Gold are accepted at the rate of its purity without discount. The timeline and issue calender is announced by T.R. Prime Ministry Undersecretary of Treasury.
After the issuance, the investors can sell the securities to our Bank until the maturity date and can receive the principal and accrued interest/accrued lease in Turkish Lira. If investors sell securities during the first three months (including the 90th day) after the issue date, the buyback price is announced by 1.50% discount. After this period no discount is applied for the buyback price. If the securities are sold before the maturity date, the buyback price is announed according to the market prices for gold. The securities can also be transferred to another retail investor before maturity. At the date of the maturity, the last coupon / lease payments indexed to the gold price will be paid in Turkish Lira. The semi-annual gold coupon/lease payments are done in Turkish Lira which is indexed to gold price at the coupon payment dates.
On maturity, the investors may request the principal payment for their gold bond redemption either as 1 kilogram of physical gold bar and Republic Gold Quarter Coins printed by Turkish State Mint or as grams of gold into their deposit account. Before redemption date investors should inform our Bank about their preference of physical gold principal payment demand during the "Physical Gold Demand Period". For the investors who do not submit their physical gold demand during this period, the principal payments are done as grams of gold into gold deposit accounts.
The Securities that is issued and sold to investors are electronically kept within the Central Securities Depository of Turkey.
The Council of Ministers decided the withholding tax rate to be 0% for the Gold Bond / Gold Lease Certificate.