Kuveyt Turk Issues Sukuk For Try 300 M

With the lease certificate (sukuk) of 300 million TL with a tenor of 179 days, Kuveyt Türk has realized the initial public offering with the highest amount so far by the private sector in Türkiye


The issuance of lease certificate (sukuk) carried out by Kuveyt Türk operating in Türkiye by adopting the “robust banking” model for which the bookrunning process took place on 9-10-11 May 2016 is the highest amount sukuk in TL in domestic market in the amount of 300 million TL and with a tenure of 179 days. Thus, Kuveyt Türk has even exceeded its own previous record breaking sukuk issuance of TL 200 million as realized on 13 November 2015.

Improving its resource diversity with its lease certificate issuances 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 initial public offering. Mr. UYAN said, “We consider it important in issuing the lease certificates in the form of initial public offering; because we wish that our product complying with the Participation Banking principles reach more and more people and gain depth. Therefore, we will continue similar public offerings in the future, too. The first lease yield shall be made on 11 August 2016 to the certificate holders. The second lease yield shall be paid to the investors on 8 November 2016 at the end of the maturity, together with principal sums. The fact that the lease certificates with a gross annual yield of 10,23 percent are offered at lower cost than the similar deals realized recently has strengthened the investors’ confidence in our Bank, which is a highly pleasing development.”

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 7,2 billion in domestic and overseas markets in different currencies such as US Dollar, Ringgit Malaysia and Turkish Lira, and 4,7 billion TL is currently circulated in various markets.