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TURKEY:
Joining the likes of Turkiye Finans and Kuveyt Turk, Al Baraka Turk
Participation Bank (Al Baraka Turk), the Turkish subsidiary of
Bahrain’s Al Baraka Banking Group (ABG), has successfully raised US$350
million through Sukuk.
The
five-year Wakalah-Murabahah program received US$750 million in
subscription, more than double the required amount. With a profit rate
of 6.25%, the Sukuk was issued by its leasing subsidiary, Bereket
Varlik Kiralama, and listed on the Irish Stock Exchange.
Adnan
Ahmed Yousif, the chairman of the board of directors of Al Baraka Turk,
president and CEO of ABG, said: “We are indeed delighted at the large
success of the Sukuk of the bank, given the prevailed fluctuated
financial markets and world economic conditions. This endorses the
strength of the position and reputation of Al Baraka Turk in the
Turkish market, on the back of its consistent and successful
performance over the past many years and the successes and reliability
enjoyed by a series of syndicated finances and Sukuk issuances arranged
by the bank during the past years.”
Rated
‘BB’ by S&P, the Sukuk was taken up by various banks, financial
institutions and investment funds from different financial centers.
Geographic distribution of the paper was: Middle East (61%), Europe
(31%) and Asia (8%). In terms of investor type: banks and financial
institutions (80%), funds (8%), hedge funds (6%) and agencies (6%).
Emirates NBD Capital, Nomura, QInvest and Standard Chartered were the
deal’s lead managers.
Turkish
financial institutions have been fairly active in the Sukuk market this
year. Al Baraka Turk’s issuance marks the third Sukuk deal in the first
half of 2014. Other issuances that are in the pipeline include: Turkish
real estate investment trust Kiler GYO’s US$100 million Sukuk and asset
leasing company Dogus Varlik Kiralama’s US$400 million corporate Sukuk
offering.
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