Turkish Islamic bank Kuveyt Turk has picked seven banks to arrange a potential dollar-denominated sukuk to bolster its supplementary or Tier 2 capital, sources familiar with the matter told Reuters on Tuesday.
Kuveyt Turk Participation Bank, which is 62 percent owned by Kuwait Finance House, is planning to issue the sukuk after the Muslim festival of Eid al-Adha which begins this week, two sources with direct knowledge of the deal said.
Kuveyt Turk has picked KFH Capital, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD, HSBC, Noor Bank and QInvest to arrange investor roadshows ahead of the potential issue, the sources said.
The lender is expected to raise around $400 million, one of the sources said.
Asked about the plan, a bank official only said, “there has been no mandate yet”, without elaborating.