Türkiye Finans, Albaraka Türk apply for lira sukuk

Türkiye Finans, Albaraka Türk apply for lira sukuk

ISTANBUL - Reuters
Türkiye Finans, Albaraka Türk apply for lira sukuk

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.