Kuveyt Türk is leading the way in innovation in participation banking by providing new investment products to its customers and investors; Kuveyt Turk is now offering a gold-based exchange-traded fund to the public. Having promoted gold as a financial instrument, Kuveyt Türk has opted to issue the first exchange-traded fund (ETF) in participation banking to be based on gold. The book-building of Kuveyt Türk’s offering for its gold-based ETF called “_GoldPlus_” will be on July 22-23. Once the IPO is completed and the fund fully established, Kuveyt Türk will be the first participation bank in Turkey to have founded an interest-free exchange-traded fund in Turkey.
Sharing information about the GoldPlus gold-based ETF, Mr. Ufuk Uyan, Chief Executive Officer of Kuveyt Türk Participation Bank A.Ş., said the bank had blazed new trails in the participating banking sector. Mr. Uyan continued:
“As a participation bank, we are working to provide new products to our customers and investors. We have opted to issue a gold-based fund in our ETF product by taking advantage of our longstanding experience in the gold market. Our aim with the GoldPlus gold-based ETF is to offer both our existing customers and the entire market opportunities to invest in gold through capital market. We will play a pioneering role in filling the gap in this area by offering new and different investment and treasury products to the market on an interest-free basis in the coming days.”
Emphasizing that they had entered a niche area in participation banking by introducing the GoldPlus and will be the first participation bank to establish an exchange-traded fund in Turkey, Mr. Uyan noted that GoldPlus was unique as an interest-free financial instrument, and added that they were expecting institutional investors in particular to show interest in the fund.
Each share in the gold-based ETF, which will be traded under the code GOLDP in the Istanbul Stock Exchange and managed by Bizim Menkul Değerler following the IPO, will represent approximately 1 gram of gold. The fund’s portfolio will be managed according to the principles of the participation banking. Since ETFs are internationally recognized products, overseas interest in GoldPlus is also expected. The written-down value of the fund will be able to be monitored under the code GOLDPI.
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