Partnership-Based Lease Certificate

You can also convert your savings that you want to convert into investments to an interest-free investment vehicle with a Partnership-Based Lease Certificate.

With the Partnership-Based Lease Certificate, you can evaluate your savings in Special Fund Account Pools that Emlak Participation manages professionally in accordance with the principles of participation finance.

With investments made for different sectors, we evaluate your savings in a balanced way with more competitive profit rates in current market conditions.

Emlak Participation evaluates the funds it collects by issuing a partnership-based lease certificate in Private Fund Pool Accounts; murabaha, leasing, participation account and/or investment instruments in accordance with the principles of participation finance. The profit or loss reflected in the Private Fund Pool at the end of the maturity and on the periodic return pay dates is shared with investors at the profit sharing rate determined at the beginning. By purchasing a partnership-based lease certificate, investors become partners in the return of the Private Fund Pool through the profit-sharing ratio initially agreed with Real Estate Participation.

Emlak Katılım provides financing support to its customers using methods compliant with participation finance principles, based on the profit-sharing ratio agreed between the parties, under the Agency and Management Agreement entered into with Emlak Katılım Varlık Kiralama A.Ş. (Emlak VKŞ), the investors’ representative, in relation to the lease certificate issuance proceeds.

Under the provisions of the Agency and Management Agreement, Emlak VKŞ is authorized, as Emlak Katılım’s Managing Agent/Mudarib, to carry out transactions and activities including, but not limited to, the following:

• Collect the receivables arising from the financing provided by Emlak Katılım to its customers on their due dates and transfer the proceeds to the collection accounts.
• Exercise due diligence in ensuring the timely collection of income from the financing provided and in carrying out the necessary investigation and follow-up procedures regarding any delays.
• Invest the sukuk proceeds in special fund pools opened by Emlak Katılım, in investment instruments compliant with participation finance principles, participation accounts and/or participation accounts based on investment agency.
• Emlak Katılım may invest a portion (10%) of the funds raised through the issuance in short-term, liquid investment instruments compliant with participation finance principles to meet potential outflows and payments related to the relevant lease certificate.

Lease certificate holders may, if needed, sell the lease certificates they hold back to Emlak Katılım before maturity.

For lease certificates with periodic return payments, when a repurchase transaction is carried out on the periodic payment dates, the secondary market sale transaction will be executed taking into account the profit/loss accrued by Emlak Katılım up to that date

Special Fund Pools are directed to investment according to the market conditions applicable for the initial maturity period separately from all fund disbursement transactions of the bank by their structure, and thus offer more dynamic and competitive returns compared to participation accounts.

The savings of rental certificate holders are professionally managed by Emlak Katılım using methods that comply with participation finance principles.

Investors who invest in lease certificates issued by our Bank may use these lease certificates as collateral to obtain financing from our Bank.

You can carry out your Lease Certificate purchase and sale transactions through the investment account you will open at Emlak Participation through our branches and the Internet Branch.