Warning: Creating default object from empty value in /home/customer/www/ebctv.net/public_html/wp-content/plugins/dfd-extensions/redux_framework/ReduxCore/inc/class.redux_filesystem.php on line 29
Turkiye Finans, Albaraka Turk apply for lira sukuk – Economics & Business Channel
Preloader logo

Turkiye Finans, Albaraka Turk apply for lira sukuk

Turkish Islamic lenders Turkiye Finans Katilim Bankasi and Albaraka Turk have applied separately to issue Islamic bonds, or sukuk, according to Turkey’s Capital Markets Board.

Turkiye Finans, a sharia-compliant lender which has a focus on loans to corporate clients, has applied to raise up to 1.5 billion lira ($513.2 million) through its wholly-owned unit, TF Varlik Kiralama.

No tenor or details of underlying assets were given for the deal, which could be sold as a public offering or to qualified investors.

Last month, sources told Reuters that Turkiye Finans was planning a dollar-denominated sukuk to bolster its supplementary capital.

Albaraka Turk, a unit of Bahrain-based Al Baraka Banking Group, has also applied to raise up to 1 billion lira through its asset-leasing company, Bereket Varlik Kiralama.

Earlier this month, Albaraka Turk mandated banks for an Islamic syndicated loan with a total initial amount of $400 million.

The bulk of sukuk issuance in Turkey has come from the government and the country’s Islamic banks, known as participation banks, although corporate issuance is also growing. ($1 = 2.9229 liras)

Source: Reuters