On May 7, 8 and 9, 2018, Kuveyt Türk will receive applications from investors for the Sukuk financial certificates it will issue at a total value of TL 250 million, maturing in 385 days and earning a fixed return. Unlike the previous public offerings, micro investors will be allowed to buy these certificates at a minimum amount of TL 1,000.
Introducing the Sukuk financial certificates to Turkey, the pioneering participation bank Kuveyt Türk will receive applications from investors on May 7, 8 and 9, 2018 for the Sukuk financial certificates it will issue by way of public offering in May at a total value of TL 250 million.
To help spread the financial activities, Kuvey Türk will offer to the public Sukuk financial certificates, so that account owners will be able to afford them irrespective of their income levels. Unlike the previous public offerings made by Kuvey Türk, this offering is open to micro investors thanks to its minimum limit of purchase of TL 1,000. This public offering aims to attract to the economy account owners who look for alternative investment products because of their reluctance for interest.
Kuveyt Türk had issued Sukuk financial certificates at a total value of 2.3 billion TL in 2017 at domestic level, and this figure represented an increase of 35% in comparison with the last year. It also was the highest amount of Sukuk financial certificates issued in TL by a participation bank in a given year in this country. Capital Market Board allocated a total limit of TL 5 billion to Kuveyt Türk in December 2017, and Kuveyt Türk issued Sukuk financial certificates at a total value of TL 1,535,000,000 in the first four months of 2018.
Advantages of Sukuk financial certificates
: Time-deposit accounts are subject to withholding tax of 12% if they mature in one year or 15% if they mature in six months; but the above mentioned Sukuk financial certificates are subject to 10% withholding tax irrespective of their maturities.
Fixed return advantage
: Since the profit to be made at the return rates set for Sukuk financial certificates can be calculated, investors will be sure of the fixed return they will enjoy on monthly basis.
Prompt cashing advantage
: Investors can sell some or all of the Sukuk financial certificates they own any time at their discretion to cash them. In case of such sale, the relevant amount will be credited to the investor’s account on the same day as the sale.