Kuveyt Türk issues 400 million TL Sukuk in a single transaction

Kuveyt Türk has broken the record in Turkish market by carrying out the Sukuk issuance of the largest ever amount in TL in a single transaction in the participation banking sector.


The Sukuk of 400 million TL with a maturity of 106 days shall be distributed to the holders together with the principal sum on 3 January 2018.

In a statement made by Dr. Ruşen Ahmet Albayrak, Executive Vice President,Treasury and International Banking at Kuveyt Türk said, “As the robust bank of the real economy, we pay great importance to the development and expansion of the investment instruments such as Sukuk deals. The Sukuk grant their investors with the right over the assets which can generate lease revenues enable their investors to enjoy fixed yields both on the medium and long term.  We, as Kuveyt Türk, have performed a number of issues of  Sukuk in TL to qualified investors so far. We have broken the record in Türkiye once again with the issuance of the  Sukuk of 400 million TL with a maturity of 106 days that we have performed recently. The funds raised through Sukuk shall be used in funding the real economy. Our issuance with a gross lease yield of 12 percent per annum has received a record-breaking demand although it has low yield ratio compared to current market practices. The Sukuk shall be distributed to the holders along with the principal sum on 3 January 2018. Ever-increasing attention in Sukuk and strong confidence of the investors for our bank make us pleased.

Stating that the Automatic Participation System (APS) in the personal pension market as introduced in 1 January 2017 has increased the interest toward the interest-free funds, Mr. Albayrak continued on to say, “We witness that around 65 percent of the participants of the APS system have preferred interest-free funds. Huge demand for interest-free funds in the APS system is highly promising in terms of the interest-free financial system. Increase of the percentage of sukuk that the pension companies can hold in their fund portfolio and introduction of short-term sukuk funds undoubtedly increase the interest toward sukuk. In the light of all these developments, we have already issued Sukuk of 1 billion 750 million TL this year, with a 50 percent increase compared to the previous year. We are pleased with the increasing interest toward the interest-free system.”

Entering the sukuk market in 2010 by carrying out another first in Türkiye, Kuveyt Türk has, so far, issued Sukuk of a total of 12 billion TL in domestic and overseas markets in different currencies such as US Dolar, Ringgit Malaysia and Turkish Lira. Of them, 6,5 billion TL is currently outstanding in various markets.