27.04.2017

Kuveyt Türk issues lease certificates of 150 million TL with a maturity of 177 days to be sold to qualified investors. Kuveyt Türk’s sukuk issue reaches 705 million TL since the beginning of 2017.

Maintaining its leading position in deepening and improving of lease certificate market since 2010 in Turkey, Kuveyt Türk has successfully closed the lease certificate issue of 150 million TL with a maturity of 177 days for which book running has been launched on April 11 by KT Kira Sertifikaları Varlık Kiralama A.Ş.

The principal sum and lease return shall be paid on 6 October 2017

Commenting on the issue process of the lease certificate, Kuveyt Türk CEO Mr. Ufuk Uyan said: “Part of the revenues obtained from the assets taken over by KT Kira Sertifikaları Varlık Kiralama A.Ş. shall be distributed to the certificate holders on October 6th, 2017 along with the principal sum. The fact that the lease certificates with a gross annual return of 11,50 percent are offered at lower cost than the similar deals realized recently and that a demand of 206 million TL is received for the issue is the clear indication of investor confidence toward our bank just like previous issues.”

Lease Certificate Transaction Volume of 11,6 Billion TL

Stating that Kuveyt Türk has been awarded the “Turkey’s Leading Sukuk Issuer” award in 2016 at ‘Capital Markets Awards’ held by Turkish Capital Markets Association (TSPB), Mr. Uyan went on to say: “We continue our efforts to further grow and deepen the lease certificate market in Turkey since 2010. Our bank has completed the issuance of sukuk for an amount of 11,6 billion TL including in different currencies such as US Dollar, Ringgit Malaysia and Turkish Lira both at home and abroad and 6,2 billion TL of such issue is outstanding in the market. Since the beginning of 2017, we have already issued sukuk of 705 million TL. Our lease certificate issue of 250 million TL with a maturity of 100 days on February 14th, 2017 has been registered as the highest amount deal performed by private sector in Turkey that has been offered to qualified investors. As known, certain tax incentives recently introduced by the government for the lease certificates in an effort to deepen the sector are key to new entrants in and the growth of the market. Accordingly, we will continue contributing to the real economy through lease certificate issues to be realized by private sector in accordance with the Participation Banking principles and to be supported by the knowledge and experience of our bank”.