Lease Certificate (Sukuk)

Lease Certificate

You can easily perform lease certificate purchase and sale transactions at Kuveyt Türk through our branches and Online Branch.

You can use Kuveyt Türk to trade your lease certificates securely and effortlessly.

What Is a Lease Certificate?

A lease certificate, also known as sukuk or Islamic bond, is an interest-free asset ownership interest. A lease certificate creates a fixed or variable profit.

How to Buy a Lease Certificate

All you need to know about purchasing a lease certificate are:

  • You can trade lease certificates through Kuveyt Türk Mobile, Internet Branch, TradePlus, and our branches.
  • You must have an Investment Account for the trading transaction to be realized.
  • You can open your Investment Account through the "Investment Menu" on Kuveyt Türk Mobile and Internet Branch.
  • You can buy lease certificate by sending the required amount to the opened account and following the instructions on the Investment Menu.

Lease Certificate Features

The main features of lease certificates are:

  • A Lease Certificate is a product that can be traded in secondary markets.
  • Lease Certificate are issued by Varlık Kiralama Anonim Şirketi.
  • Kuveyt Türk certifies real estate on its balance sheet, machinery, and equipment in its portfolio through leasing and investment lease certificates as underlying assets. These certificates are issued through Varlık Kiralama Anonim Şirketi.
  • In the certificates issued by Kuveyt Türk, you can have rights in proportion to your share and earn the returns generated by the assets until the end of maturity.
  • Lease Certificates can be issued in different forms, including those based on management contracts, ownership, purchase and sale, partnership, and work contracts.

Lease Certificate Return Rates

Lease Certificates

ISIN Foreign Exchange Return on Purchase (%) Return on Sales (%) Expiry
XS1141043296 USD 4,50 4,50 25.11.2024
TRD020224F10 EUR 2,79 2,14 02.02.2024
XS2351109116 USD 8,40 7,41 22.06.2026
TRD181023T17 TL 18,75 17,50 18.10.2023
  • The return rates you can obtain from a lease certificate may vary on an export basis.
  • You can learn more about current rates and yields at the nearest Kuveyt Türk branch.

Benefits of Lease Certificates

Following is a list of the main benefits of lease certificates:

  • Lease certificates offer medium and long-term fixed-income investment opportunities.
  • With a lease certificate, you can receive periodic return payments.
  • All certificates issued are based on a real commercial relationship and a visible material reality.
  • Since the certificates are listed on Borsa Istanbul, liquidity is available through secondary market transactions. You can fully or partially cash out the lease certificates before maturity in line with your needs.
  • You can use the products issued by Kuveyt Türk as collateral at our bank.
  • Lease certificates also provide the following tax advantages:
    • For real-person investors, there is a 10% withholding tax deduction for lease certificates issued by the Republic of Turkey's Ministry of Treasury and Finance. The withholding tax rate for lease certificate issues realized by Kuveyt Türk Katılım Finans Kuruluşu A.Ş. is 15%.
    • The income of real persons who are limited or full taxpayers, foundations, associations, and similar legal entities from the purchase and sale of lease certificates and lease payments is subject to 5% income tax withholding. For real-person investors, a 5% withholding tax is a final tax and cannot be included in the Annual Income Tax Return.
    • For joint stock/limited/commandite companies, investment funds/investment trusts subject to the Capital Markets Board (CMB), similar foreign funds/partnerships, and those determined to be similar by the Ministry of Finance, income from the purchase/sale/lease payments of lease certificates are subject to 0% income tax withholding.
    • Those other than the above are subject to withholding tax at 5%. Withholding tax is deducted from the calculated corporate tax. Banking and Insurance Transactions Taxpayers are required to calculate and pay 1% BITT on lease certificate trading income and 5% BITT on lease payments.
    • The Ministry of Finance can revise these rates at any time.

Where Can I Trade Lease Certificates?

You can use the following platforms to trade lease certificates:

Frequently Asked Questions

What are lease certificates?

Lease certificates are a fund for cash-flow-intensive individuals who intend to invest in short and medium-term lease certificates.

Are lease certificates risky?

Lease certificates have a guarantee equal to the value of the underlying asset. Therefore, it is a safe financial investment instrument.

Is there a government guarantee for lease certificate investors?

Lease certificates are not subject to the Savings Fund Collection Insurance Fund. Therefore, there is no state guarantee.

Do lease certificates comply with interest-free finance?

Lease certificates are accepted by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) as compliant with the principles of interest-free finance.