Kuveyt Türk has completed the first corporate lease certificate issuance of 125 million TL for a maturity of 176 days where Superonline, the largest fiber internet provider acts as “Fund User and Sourcer”.
Kuveyt Türk Katılım Bankası has raised funds from the market through its alternative interest-free instrument in meeting the financing needs of Superonline through the lease certificate issuance of 125 million TL with a maturity of 176 days for which bookbuilding took place on 21 March 2018.
Commenting on the lease certificate issuance process, Mr. Ufuk Uyan, the CEO of Kuveyt Türk, explained that the issuance has been realized by KT Sukuk Varlık Kiralama A.Ş., a 100 percent subsidiary of Kuveyt Türk. Explaining that the funds collected from the investors by KT Sukuk Varlık Kiralama A.Ş. has been transferred to Superonline through the investment agency or Wakalah and that the revenues derived from the fiber internet packages would be distributed to the certificate holders, Mr. Uyan said: “Given the fact that it is the first ever transaction in the telecom market, we are very pleased to have closed 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 125 million TL from 34 funds of 19 different companies
“Sukuk market will grow deeper”
Stating that they have established KT Portföy Yönetim A.Ş. in 2015, as a novelty in the participation banking sector, Mr. Uyan 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. The funds managed by such companies are growing steadily. 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 Superonline 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.”