Kiler REIT set to issue Islamic bond

ISTANBUL - Reuters

Turkish real estate investment trust Kiler GYO is planning to issue a five-year Islamic bond worth at least $100 million in the second half of this year, parent company Kiler Holding’s Chief Financial Officer Kaan Aytogu has said.

Kiler is talking to banks from Saudi Arabia and Qatar about buying the bond, which will be used for investment and to extend the maturity of existing loans, Aytogu told Reuters late Feb. 11.

Last week, Turkish food retailer Kiler signed a $120 million four-year loan deal, including shariah-compliant borrowing, with Bank of America, Merrill Lynch and banks from the Gulf region.

Turkey’s Islamic finance industry is being reshaped as banks widen their product range and competitors prepare to enter the market.