Option

For purchasing an option contract; A “Derivative Transactions Framework Contract” and the “General Risk Notification Form”, “Over-the-Counter Derivative Transactions Risk Notification Form” and “Compliance Test” which are annexes to this contract must be signed between the Customer and the Bank, and the Customer must be a registered customer within the Bank.

It is also required that a “General Loan Contract” is signed between the Exporter and the Bank and that the necessary collateral have been established within the Bank,

All of our exporters who provide us with related documents can process options transactions without any special conditions such as loan usage, export commitment etc.

The Exporters which currently have their firm information within our Bank;

Must deliver the authorized signatory lists with notary certification belonging to the individuals who are authorized to represent and bind the company and that have their signatures on the contract to Treasury Operation Directorate by hand and/or via mail-courier along with the “Derivative Transactions Framework Contract” and the “General Risk Notification Form” and the “Over-the-Counter Derivative Transactions Risk Notification Form”, which are annexes to this contract, signed in 2 copies.

Additionally Option sellers must sign the “General Loan Contract”, and following the derivative transaction limit allocation;

When an option transaction is made, the “Currency Option Transaction Form” obtained from the calculation tools must be delivered to the bank.

Since the risk of not fulfilling the exporter’s obligation in selling an Option Transactions is not guaranteed, there is loan risk for the option contracts. The Bank requests initial collateral from the Exporter for this risk.

In determining the TL equivalent of the collateral amounts that will be established, Türk Eximbank’s currency buying rates will be used. For the related transactions, within the derivative transaction limit, separate collateral will be established for each transaction. Each transaction’s maturity is limited to 10 days prior to the maturity of the collateral provided. The initial and maintenance collateral level is determined by the Head Office on transaction basis.

The amount that must be provided by the Exporter as collateral for the Bank to sell an option transaction is the initial collateral. Maintanence collateral is the lowest level at which the initial margin can be decreased as a result of the exchange rate fluctuations in the market during the period of the exchange rate option maturity.

• Bank Definite Guarantee Letters,
• Cash Pledge
• Securities issued by countries rated as Country Risk Rating Aa1 and higher by Moody's,
• T.R. Securities issued by the Ministry of Treasury and Finance in the country and abroad,
• Securities issued by Türkiye Export Credit Bank A.Ş.
• Securities issued by T.R. Ziraat Bankası A.Ş, Akbank T.A.Ş, T. Garanti Bankası A.Ş, T. İş Bankası A.Ş, T. Sınai Kalkınma Bankası A.Ş. and Yapı ve Kredi Bankası A.Ş.,
• or other collateral types that the Bank deems appropriate are acceptable.

In case the total collateral held in the account of the exporter falls below the maintenance collateral, the exporter is required by the Bank to complete the amount of the collateral at the initial collateral level. This request is named as “Margin Call”.

• Our Exporter sends the ‘Currency Option Transaction Form’ to our bank which will be obtained by filling in the relevant fields in the option premium calculation screen within the calculation tools.
• The Exporter who wants to make the transaction sends the required premium amount to the Bank’s account in TC ZİRAAT BANKASI - IBAN No: TR 4800 0100 1133 9990 0302 5014. (IT IS MANDATORY TO USE IBAN)
• In the event that the amount of the premium is not deposited by the exporter, the relevant purchase offer shall be null and void.
• Following the delivery of the Transaction Form and the receipt showing that the premium amount  is debited to the Bank, our exporter does not have the right to renege on the transaction or change the amount that they want to transact. The Bank reserves the right to reduce the transaction amount.
• The bank confirms the transaction result with the “Option Transaction Receipt” which will be sent to the Exporter on transaction day.
• Our exporter sends the “Option Transaction Receipt” to the Bank by writing “Notified and Accepted” to the “Option Transaction Receipt” signed by two individuals authorized to represent the firm.

• The Exporter whom a derivative limit is allocated and collateral is established sends the “Transaction Form” that includes the related conditions and signed by the individual(s) authorized to represent the firm.
• Upon execution of the transaction, the necessary initial collateral amount is blocked and reduced from the collateral amount provided by the Exporter.
• Following the blockage of the collateral amounts, the Exporter does not have the right to renege on the transaction or the right to change the transaction. The Bank reserves the right to reduce the transaction amount.
• The bank confirms the transaction result with the “Option Transaction Receipt” which will be sent to the Exporter on transaction day.
• Our exporter sends the “Option Transaction Receipt” to the Bank by writing “Notified and Accepted” to the “Option Transaction Receipt” signed by two individuals authorized to represent the firm.

• After the bank has sent the original option transaction receipt to the address of the customer within 5 (five) business days at the latest from the transaction date, our Exporter delivers the wet-signed original of the option transaction receipt by mail or courier within 5 (five) business days to the bank at latest.
• Option transactions are European type options and since they are options that can be used at the maturity, no transaction may be performed during the option period.
• For the option seller as a result of daily valuation, if there is profit in terms of the exporter, there is no change in the collateral amount.
• As a result of daily valuation, if there is loss in terms of the exporter, and the amount of the loss incurred does not fall below the level of maintenance collateral determined by the Head Office, a margin call will not be made.
• As a result of daily valuation, if there is loss in terms of the exporter, and the amount of the loss incurred falls below the level of maintenance collateral determined by the Head Office, the collateral level will be increased to the initial collateral amount.
• If the exporter does not comply with the margin call within 2 (two) business days, the default principles will go into effect and the exporters’ collateral will be compensated.

• Foreign exchange rates to be used in cash settlement are determined by the Bank at 12:00 London time on the maturity of the transaction. The Bank’s determined rates are announced on the internet site or directly to the Exporter.
• At the maturity date of the option transaction, the Option Buyer informs the bank whether the right to buy/sell foreign exchange arising from the option transaction be used. In case no notice is given until the specified time, Exporter will be deemed not using the right arising from the option process. Option transaction becomes null and void automatically. The option premium paid by the customer at the option date remains in the bank and the amount is not returned to the customer under any circumstances.
•  Where the Option Buyer decides to use the option right, and the settlement type is chosen as Cash Settlement,  the Bank pays the Cash Settlement amount to the account specified by the customer until the EFT system closes at the maturity date in TL or if the settlement type is chosen as phyical settlement, the amount which will be paid to the Exporter is the amount written on the option transaction receipt. The Exporter pays the amount until the stated time and following that the Bank pays the amount to the Exporters account and option transaction is closed.
• In Option Sales of The Exporter;
• At the maturity date of the option transaction, the Bank informs the option seller whether the right to buy/sell foreign exchange arising from the option transaction be used. If the settlement type is chosen as Cash Settlement, the Exporter pays the Cash Settlement amount to the account specified by the Bank until the EFT system closes at the maturity date in TL or in the case of physical delivery, the option transaction ends when the transaction amounts are transferred to the account mutually.
• In case no notice is given until the specified time, the Bank will be deemed not using the right arising from the option process. Option transaction becomes null and void automatically.