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Solid demand for Kuveyt Türk’s lease certificates


Improving its resource diversity with its lease certificate issuance in domestic and overseas capital markets, pioneering in sukuk market with its innovations and breaking records, Kuveyt Türk has completed its most recent lease certificate issuance in an amount of 600 million TL against a demand of 640 million TL for which bookbuilding has been conducted recently.
Entering the sukuk market in 2010, marking another first in Türkiye, Kuveyt Türk continues to break new records in this respect. The Bank has closed the bookbuilding process conducted between October 10-11, with a demand of 640 million TL.
In a statement made over the matter 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 attach great importance to the development and expansion of the investment instruments such as lease certificates. As known, the interest-free fund size that accounts for around 60 percent of the Automatic Participation System  (APS) that has been introduced on 1 January 2017 in the Personal Pension market is increasing steadily. As Kuveyt Türk, we are increasing the volume of our sukuk issuances in a bid to contribute to the growth of interest-free funds and foster the development and growth of the market as the market maker. We have renewed our lease certificate issued on 4 July 2018 in the amount of 450 million TL as 600 million TL on the redemption date of 12 October 2018 based on the demand of 640 million TL. 77 percent of the investors participating in the sukuk issuance are qualified investors while 23 percent include corporate investors such as portfolio management companies, mutual pension funds and insurance companies. Thus, we have completed sukuk issuance of 4 billion 390 million TL since the beginning of the year. Ever-increasing interest in lease certificates and unshakable confidence of the investors in our bank make us pleased.
So far, Kuveyt Türk has completed the issuance of sukuk for an amount of 10.4 billion TL at home and 1,8 billion USD and 800 million Ringgit Malaysia abroad. Portion of such sukuk issuance which are outstanding in various markets include 1.950 billion TL, 1.350 billion USD and 800 billion MYR.