Bank Asya Barred From Selling Sukuk After Shares SuspendedIsobel Finkel
Turkish regulators said they won’t consider Bank Asya’s application to sell 140 million liras ($65 million) in debt, dealing another blow to the suspended Istanbul-based lender.
The Capital Markets Board, or SPK by its Turkish acronym, “won’t review” the application to sell debt, according to a weekly bulletin from the regulator yesterday after the stock market closed. It cited “ambiguity over ownership.”
The shares have been on hold since Aug. 7, after large swings on contradictory government statements about a possible state purchase. Bank Asya was subsequently suspended from trading on the Istanbul exchange and removed from the main indexes. Regulators have also revoked the bank’s right to collect tax on behalf of the government.
The bank, whose full name is Asya Katilim Bankasi AS, said it applied to sell the debt in March.
Bank Asya posted second-quarter profit of 10.6 million liras, compared with 55.3 million liras in the year-earlier period. The lender’s market capitalization has dropped to about $514 million from $1.7 billion in 2010, according to data compiled by Bloomberg.
Bank Asya shares declined 14 percent this year before being suspended. That compares with a 20 percent gain on the Turkish banking index this year.