TWF completes first int’l Islamic finance transaction

ANKARA

Türkiye Wealth Fund (TWF) has signed a $100 million Murabaha financing agreement with Sharjah Islamic Bank (SIB).

This three-year term agreement marks the first Islamic finance transaction for the TWF.

Doğan Investment Bank acted as the financial adviser and coordinator for the transaction, the fund said in a statement.

The transaction, which is the first mutual Murabaha financing provided to a sovereign wealth fund in the world, solidifies the confidence of international markets in the Turkish economy following the successful Eurobond issuance, which was completed with a record-breaking demand in February, the statement added.

The Treasury raised 2 billion euros earlier this month through a Euro-denominated bond due 2030.

The offering attracted an orderbook of more than five times the actual issue size, with 42 percent of the issue sold to investors in the U.K. and Ireland and 21 percent to investors in other European countries.

Some 15 percent and 13 percent of the issue were sold in the U.S. and the Middle East, respectively, the Treasury said.

The TWF is an asset-backed development fund that focuses on the growth targets of its portfolio companies through value creation programs, investments in key sectors and visionary projects to support the economic development in the country, the fund on its website said.

TWF has a portfolio of assets including 30 companies, such as Turkish Airlines, public lenders Ziraat, Halkbank, Vakıfbank as well as Borsa Istanbul.