Great Interest From Investors In Kuveyt Turk's Lease Certificate

Kuveyt Türk issues lease certificates of 170 million TL with a maturity of 110 days for the qualified investors.


The issuance of lease certificate (sukuk) carried out by Kuveyt Türk operating in Türkiye by adopting the "robust banking" model for which the bookrunning took place on 22 June 2016 in an amount of 170 million TL with a maturity of 110 days has received a demand of 207 million TL from the investors. While the substantial part of the demand (133 million TL) comes from the funds managed by portfolio management companies, it was remarkable that the investors were diversified.

Improving its resource diversity with its lease certificate issuance in domestic and overseas capital markets and pioneering in sukuk market with its innovations and records, Mr. Ufuk UYAN, the CEO of Kuveyt Türk commented on the issuance. Mr. UYAN said, "During a volatile period in domestic and overseas markets, a lease certificate issuance of 170 million TL which received a demand of 207 million TL is very significant and remarkable. The confidence in our Bank by the local domestic and individual investors further strengthen our willingness and ambition to take the participation banking forward. We will continue our efforts to grow and deepen the sukuk market in Türkiye. Especially in terms of individual investors, we see that the lease certificates offer withholding tax benefits when compared to the participation accounts. The lease certificates issued based on an asset and the lease yield of that asset is participation banking-compliant product in its real sense."

Entering the sukuk market in 2010 by carrying out another first in Türkiye, Kuveyt Türk has, so far, issued lease certificates of a total of TL 7,4 billion in domestic and overseas markets in different currencies such as US Dollar, Ringgit Malaysia and Turkish Lira, and 4,6 billion TL is currently circulated in various markets.