Realizing Turkey's and the world's first sustainable subordinated sukuk issuance last year, Kuveyt Türk created Turkey's first participation-based sustainability fund, this time within its 100 percent subsidiary KT Portföy. Investors who want to evaluate the fund, which appeals to all individual and corporate customers, will also be able to benefit from withholding tax exemption until March 31, 2022.
KT Portföy, a 100 percent subsidiary of Kuveyt Türk, which effectively brings its distinguished financial products and services to savers and investors, announced that it has offered its customers a new sustainability participation fund based on environmental, social and corporate governance (ESG) criteria. Customers who want to have the fund shall be able to benefit from the withholding tax exemption until March 31, 2022.
Sustainability Participation Fund, managed by KT Portföy, accessible to investors through Kuveyt Türk and all banks/intermediary institutions, mainly consists of shares of domestic and foreign companies with high performance in environmental, social and corporate governance (ESG) and lease certificates issued by companies that meet these criteria. While investing in accordance with the ESG criteria within the scope of the fund, the shares and lease certificates of companies that attach importance to the environment, society and corporate governance are obtained. Investors who invest in this fund contribute to building a sustainable future by financing models that are beneficial to the environment and society, as well as earning returns. The fund also makes it possible to invest in a certain amount of USD denominated foreign shares and lease certificates.
“We expect the sustainability fund to reach 500 million TL”
Stating that they are happy to present Turkey's first participation-based sustainability fund to its customers, Kuveyt Türk’s Executive Vice President of Treasury and International Banking and Chairman of the Board of KT Portföy Dr R Ahmet Albayrak said, “The Sustainability Participation Fund, which we offer as part of KT Portföy, stands out as the first participation-based fund, where investors can invest in USD denominated foreign shares and foreign lease certificates, as well as being the first participation-based sustainable investment fund. As Kuveyt Türk, we anticipate a significant demand for the sustainability fund, as was the case with the Global Sustainable Tier 2 Subordinated Sukuk Issuance, which we realized for the first time in Turkey and in the world. We expect our fund to reach 100 million TL for the end of 2022, and 500 million TL after 5 years. We may say that our fund will attract great interest and will be a beneficial fund for a sustainable future, with the effect of the increasing awareness of sustainability all over the world.”
Turkey's and the world's first sustainable subordinated sukuk issuance
In line with the principles of participation finance, in 2021, Kuveyt Türk realized the "Global Sustainable Tier 2 Subordinated Sukuk Issuance" for the first time in Turkey and in the world, and garnered a significant demand with this sukuk issuance. Sustainable sukuk issuance worth $350 million, with a maturity of 10 years and an early redemption option at the end of the 5th year, received more than $4.3 billion in demand across a wide geographic range, including Continental Europe, United Kingdom, America, Asia and the Gulf. Kuveyt Türk continues to use the resources obtained from sustainable sukuk in green and social project financing, especially in renewable energy financing.