280 Million TRY Sukuk Issuance In a Single Transaction

Kuveyt Turk breaks Its Own Record for Sukuk Issuance in TR


Kuveyt Türk has completed the largest ever of sukuk issuance in TRY to qualified investors in the private sector in Turkey. The bank has broken its own sukuk record with the issuance of 280 million TRY with a maturity of 175 days. Mr. Ufuk Uyan, the General Manager, told that they would apply to CMB for the sukuk issuances through public offering in the upcoming term.

Kuveyt Türk Katılım Bankası has outperformed its February 2017 sukuk issuance of 250 million TRY through its new issuance of 280 million TRY with a maturity of 175 days or which bookbuilding took place on 24 May 2017. Accordingly, the bank has surpassed its own record by completing the largest ever of sukuk transaction in TRY to qualified investors by the private sector in Turkey.

Commenting on the issuance process for the sukuk, Mr. Ufuk Uyan, the CEO of Kuveyt Türk said: “The revenues obtained from the assets taken over by our 100% subsidiary KT Kira Sertifikaları Varlık Kiralama A.Ş. shall be distributed to the certificate holders on 16 November 2017 along with the principal sum. The fact that the sukuk transaction with a gross annual yield of 12 percent are offered at lower cost compared to both the similar deals and conventional bonds and received a substantial demand. It is confirmed that the substantial demand for the deal is the  indication of investors’ confidence for our Bank.”

“Sukuk must be deployed to large masses”

Stating that they have paid special attention to the public offering issues to larger masses in addition to sukuk transactions to qualified investors, Mr. Ufuk Uyan explained as follows:

“This year we have completed the issuance of 655 million TRY amounted sukuk transactions as part of the issuance programme of 2 billion TRY as approved by Capital Markets Board (CMB). We are intending that sukuk issuances attract much more people and as a result the sector will be enhanced. For this purpose, we will apply to CMB for the issuance of sukuk through public offering in the near future.”

Entering the sukuk market in 2010 by carrying out another first in Turkey, Kuveyt Türk continues its efforts to improve and deepen the market and has since issued sukuk transactions of a total amount of TRY 11,6 billion in both domestic and overseas markets in different currencies such as US Dollar, Ringgit Malaysia and Turkish Lira. In addition to that currently, outstanding amount of sukuk transactions is 6,2 billion TRY in various markets.