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Tera Investment Bank, the banking arm of Tera Yatirim Holding, missed payments on a matured financing bond, leaving investors owed about ₺6.05 billion ($123 million) as its affiliated portfolio manager faces fallout from a market rout in Türkiye following failed fund redemptions in mid-September.
According to a statement from Türkiye's Central Securities Depository (MKK) on Monday, the TRFTRYBE2614 bond's principal and coupon payments could not be processed because the issuer did not transfer the required funds.
Tera issued the financing bond on April 6, 2026, with a 182-day maturity and a nominal value of ₺5 billion. The security was sold to qualified investors and carried an annual simple interest rate of 42%. For the full term, the applicable interest rate was 20.9%, generating about ₺1.05 billion in interest.
Combined with the principal, investors were due roughly ₺6.05 billion at maturity.
The development follows that Türkiye's Banking Regulation and Supervision Agency (BDDK) transferred management of Tera Investment Bank, Destek Investment Bank, and Hedef Investment Bank to the Savings Deposit Insurance Fund (TMSF) as part of the ongoing probe into capital market irregularities.
The decision also included Destek Finance Factoring and Tera Finance Factoring.
TMSF received shareholder rights, excluding dividend rights, attached to certain shares in the three investment banks. The three banks account for 0.2% of total banking sector assets, while the two factoring firms represent 1.5% of the sector's assets, the regulator said.
The broader capital-markets investigation expanded after several investment funds, including those managed by Tera Portfoy, failed to meet investor redemption requests and faced a liquidity squeeze amid heavy withdrawals on Sept. 16-17.
Prosecutors are examining trading activity in 26 Borsa Istanbul-listed stocks for suspected market manipulation, along with money transfers and links to individuals and accounts that generated unusually large gains.
So far, 85 of the 217 suspects have been arrested, while 98 have been placed under judicial control. Those arrested include Tera Yatirim Holding Chairman Emre Tezmen, Tera board members Emre Alkin and Kerem Alkin, Tera Portfoy General Manager Alper Ozturk and Pusula Holding Chairman Serdar Turhan.
Investigators are also reviewing the financial transactions of executives and their relatives linked to companies at the center of the probe, including account activity, money transfers and cryptocurrency movements abroad since 2024.
Authorities have frozen assets belonging to dozens of suspects and seized luxury vehicles, private jets and yachts allegedly linked to them.
The Capital Markets Board (SPK) ordered 131 investment funds to be liquidated over six months, with Ziraat Bank and Is Bank overseeing the process. The move affects 455,758 individual investors, while the funds are estimated to hold around ₺936.3 billion ($19.1 billion) in assets based on market valuations at the time.
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