Kuveyt Türk’s international sukuk issuance of US$500 million for a tenure of five years has become the most successful international capital markets issuance conducted in Turkey in 2016, said the bank which is 62% is owned by Kuwait Finance House.
The sukuk issuance was priced at a yield rate of 5.162%, and was oversubscribed four times. The issuance attracted more than 115 international investors from the Gulf, Europe and Asia, 61% of whom were from Gulf countries, and 12% from Asia.
Ufuk Uyan, GM, Kuveyt Türk said, “Just like our previous issues, the international investors have once again displayed their confidence toward Kuveyt Türk and their appetite for taking the medium-long term risk of Kuveyt Türk and Turkey. In this respect, we are very pleased that we bring in new resources to our country. It is seen that our issuance will serve as a benchmark for other overseas issues to take place in Turkey.
"As a matter of fact, when all the issues taken place in 2016 are compared, this is the most successful issue in terms of the demand level and the cost. Ongoing development and improvement of investment banking and confidence of sukuk investors in the sector and our country as well as the strong equity structure and quality asset structure of Kuveyt Türk have become influential in successful closing of this issue.”
Kuveyt Türk appointed KFH Capital as Global Coordinator, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, KFH Capital, Noor Bank, Qinvest, and Standard Chartered Bank as Lead Arrangers/Bookrunners, as well as Al Rayan Investment and Warba Bank Co-Arrangers.