cpifinancial.net - Liquidity Management House (LMH) arranged and distributed an Ijara/Wakala Sukuk for Kuveyt Turk for an amount of $350 million over a tenor of five years
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The Vice Chairman and CEO of Liquidity Management House (LMH), Emad Y. Al-Monayea, stated that LMH managed to arrange and distribute an Ijara/Wakala Sukuk for Kuveyt Turk for an amount of $350 million over a tenor of five years. The Sukuk issuance was rated BBB- by Fitch and will be listed on the London Stock Exchange. Al-Monayea stated that the issuance was concluded in a record time with a competitive rate during a difficult market period; all while adhering to the recent law issued by the Capital Market Authority in Turkey to organise the issuance of Sukuks. (source)
Further, he explained that this issuance is the first of its kind as it is the first Sukuk issued in accordance with the new law which allows sale and lease back structures in Turkey. He then added that the issuance also portrays the global acceptance of Sukuks as a financing instrument.
Senior vice President at LMH, Ahmed S. Al-Kharji, stated that the Joint Lead Managers (JLM's) and Bookrunners (BR's) in this issuance include LMH, HSBC Plc, and Standard Chartered Bank, while Abu Dhabi Islamic Bank and Commerz Bank AG appointed as JLM's. He also said that KFH Malaysia, Kuwait International Bank, Qatar Islamic Bank, and the Islamic Bank of Brunei were invited as Co-Lead Managers.
In addition, Al-Kharji mentioned that the issuance was well distributed geographically targeting investors throughout the Middle East, Asia, and Europe regions. He further stated that the subscriptions/orders received for this issuance were approximately double the issuance amount although the order book was kept open for less than 48 hours.
Since its inception, LMH has portrayed continued success gaining recognition for its expertise in arranging Sukuks, said Al-Kharji. Moreover, he stated that LMH collaborated and participated actively with other international banks to Lead Manage and Bookrun Sukuk issuances for various clients such as the International Financing Corporation, General Electric, Kuveyt Turk, and Ras Al-Khaima.
