Türkiye Finans, Albaraka Türk apply for lira sukuk

ISTANBUL - Reuters

HÜRRİYET photo

Turkish Islamic lenders Türkiye Finans and Albaraka Türk have applied separately to issue Islamic bonds, or sukuk, according to Turkey’s Capital Markets Board (SPK). 

Türkiye 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 Varlık 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 Türkiye Finans was planning a dollar-denominated sukuk to bolster its supplementary capital.

Albaraka Türk, 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 Varlık Kiralama.

Earlier this month, Albaraka Türk 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.