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The First Corporate Lease Certificate Issuance By Private Sector in Türkiye


Kuveyt Türk has completed the first corporate lease certificate issuance of 50 million TL for a maturity of 728 days through its 100% subsidiary KT Sukuk Varlık Kiralama A.Ş., where DRD Filo Kiralama, the largest operational fleet leasing company with an entirely domestic capital acts as “Fund User and Sourcer”   

Kuveyt Türk has introduced an important instrument in meeting the financing needs of companies through the lease certificate issuance of 50 million TL with a maturity of 728 days for which book building took place on 21 June 2017. Consequently, we have opened the way through which the companies could raise financing from capital markets, too.

18 funds from six different companies have participated

Commenting on the lease certificate issuance process, Mr. Ahmet Albayrak, EVP of Corporate and International Banking, stated that the issuance has been realized by KT Susuk Varlık Kiralama A.Ş., a subsidiary of Kuveyt Türk. Explaining that the revenues derived from the assets acquired by KT Sukuk Varlık Kiralama A.Ş. would be distributed to the certificate holders, Mr. ALBAYRAK said: “Given the fact that it is the first ever transaction in the market, we are very pleased to have completed it successfully. At a time when the loan placements of the banks are at a high level and most of the clients have approached such limits, it was important and meaningful for us to demonstrate that financing could also be raised from capital markets. Given the investor profiles, we see that the demand has been received from personal pension and portfolio management companies operating in accordance with the participation banking principles. The transaction has been closed with a demand of 50 million TL from 18 funds of six different companies.”

Stating that they had achieved another first in the Participation Banking sector by establishing KT Portföy Yönetim A.Ş. in 2015 Mr. ALBAYRAK went on to say: “We attach great importance to the personal pension, insurance and portfolio management companies operating in accordance with the participation banking principles. It is for this reason that we will continue pioneering the sector by taken courageous steps in the sukuk segment. We believe that, depending on the growth of the funds managed by such companies, the lease certificate market would also grow and become deeper. We have also witnessed in the lease certificate issuance completed for DRD Fleet Leasing company that the entirety of the sales is made to such corporate investors. We will continue our contribution to the lease certificate market in an effort to meet the needs of these funds as well as get our corporate clients closer to the capital markets.”

Expressing their pleasure that they have opened a brand new door into the capital markets, Mr. İlkay ERSOY, the General Manager at DRD Fleet Leasing, stated that they would be present in this market and was quoted as saying: “Thanks to our stable investments over long years and strong capital structure, we successfully maintain our market position as the leading operational fleet leasing company with entirely Turkish share capital. The sustainability of this success is mainly supported by the fact that we leave the conventional way of doing business and perform the breakthrough activities in many areas through visionary efforts. We are also pleased to have achieved the first ever corporate lease certificate (SUKUK) issuance process by overcoming the challenges of pioneering the market through the excitement of leading the way.  On this very occasion, I would like express my thanks to the professionals of Kuveyt Türk especially Mr. Karakaya for their invaluable contributions and supports in successful closing of the process.”