CAPITAL MARKETS - Moody’s move whets appetite for sukuk certificates in liras

www.hurriyetdailynews.com -Turkish participation banks are eager to begin issuing lira based sukuk certificates, as Moody’s upgrades Turkey’s sukuk issue outlook to positive with a ‘Ba1’ ratin.

Moody’s upgraded yesterday its outlook for Turkey’s sukuk issue to positive and gave it a “Ba1” rating on the heels of news that the Turkish Treasury had mandated three international banks – Citigroup, HSBC and Liquidity House – to issue “sukuk certificates,” or Islamic banking vehicles.

The new issue is expected to be completed in two weeks as Turkish banks are eagerly waiting for the Turkish Treasury to finalize the process for a Turkish Lira-based sukuk issuing regulation. Deputy Prime Minister Ali Babacan had previously said on several occasions that the Treasury was working to shape the regulation before the end of 2012.  (source)

CAPITAL MARKETS - Al Baraka revives debut sukuk on record-low yields

www.gulfnews.com -Dubai: Nine months after cancelling its debut sale of Islamic bonds because yields were too high, Al Baraka Banking Group’s Turkish unit is back approaching investors as borrowing costs tumble to record lows.

Al Baraka Turk Katilim Bankasi AS will offer as much as $250 million (Dh917 million) of seven-year dollar-denominated sukuks this year, the group’s Chief Executive Officer Adnan Yousuf said by phone on August 27 from Alexandria, Egypt. The average sukuk yield globally has fallen 91 basis points this year to an all-time low of 3.09 per cent, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index. The premium to own Islamic debt rather than US Treasuries has narrowed 81 basis points to 204. (source)

BANKING - Albaraka Turk Plans to Raise as Much as $750 Million in 2012

www.bloomberg.com - Albaraka Turk Katilim Bankasi AS (ALBRK), the Turkish unit of Bahrain’s AlBaraka Banking Group (BARKA), plans to raise as much as $750 million through syndicated financing and an Islamic bond sale this year, the group chief executive said.
The bank may raise between $400 million and $500 million from a so-called syndicated murabaha facility next week, CEO Adnan Yousif said in a telephone interview late yesterday from Alexandria, Egypt. The financing will mostly be in dollars, with some in euros, he said. The bank also plans to raise as much as $250 million from the sale of 7-year Islamic bonds this year. (source)

CAPITAL MARKETS - Turkiye Finans H1 up 61 percent, sukuk eyed in 6-9 mths

www.reuters.com - (Reuters) - Turkish Islamic bank Turkiye Finans' net profit rose 61 percent year-on-year to 145 million lira ($80.3 million) in the first half and it plans a $300 million sukuk, or Islamic bond, issue in the next 6-9 months, said general manager Derya Gurerk.
Gurerk told Reuters its net profit target for the whole year was 278 million lira, up 20 percent from 2011. The bank said previously it planned a sukuk issue by the end of the year. (source)

CAPITAL MARKETS - Turkey to mandate banks for sovereign sukuk sale - sources - Turkiye Finans plans corporate sukuk

www.reuters.com - ISTANBUL, July 5 (Reuters) - Turkey is set to mandate HSBC, Citi and Deutsche Bank to manage the sale of its first sukuk, or Islamic bond, banking sources told Reuters on Thursday.
The move by the Treasury, overcoming sensitivities about Islamic finance in the secular republic, should give Turkey access to a wider pool of investors via a global sukuk market estimated at more than $100 billion.
One banker said a size of $1 billion was being targeted, but that the sale amount was still unclear.
"The Treasury is about to finalise meetings about its first sukuk issue, and their choice (for the mandate) will be HSBC, Citi and Deutsche," said one senior banking source in London.
A sovereign sukuk from an economy regarded as one of the Muslim world's most progressive and successful would signal intent on Turkey's part to play a bigger role in Islamic finance.  (source)

BANKING - Turkiye Finans secures Murabaha Facility and Sukuk in in the pipeline

www.reuters.com - Turkish Islamic bank Turkiye Finans secured a $350 million murabaha loan, and plans to issue $300 million sukuk at the end of the year, general manager Derya Gurerk said late on Monday. (source)

CAPITAL MARKETS - Turkey Stocks: Asya Katilim, Otokar, Vestel Elektronik Move

www.bloomberg.com - Turkey’s benchmark ISE National 100 Index (XU100) fell 1.7 percent to 57,853.86 at the close in Istanbul, declining for the first time in three days. The following shares were active. Stock symbols are in parentheses.

Asya Katilim Bankasi AS (ASYAB) , an Islamic bank, slid 5.1 percent to 1.69 liras, its biggest loss since Nov. 21. The bank is waiting for “the right market conditions” to issue $300 million of sukuk bonds as “unfortunately things are not good abroad,” Chief Executive Abdullah Celik said in an interview today. (source)

BANKING - Kuwait Finance House announces 11.4% increase in deposits, 11.2% increase in total assets - Kuveyt Turk going strong

www.ameinfo.com - Kuwait Finance House (KFH) Chairman Sameer Al-Nafisi announced that KFH has achieved total revenues of KD182.8m during the first quarter of 2012.

Total profits reached KD57.4m, including KD36.9m estimated profit for investment depositors. Net profit for shareholders reached KD20.1m, while earnings per share reached 7 fils. Total assets increased to KD14.2bn, with KD1.4bn or 11.2% increase over the same period last year. Deposits increased to KD9.2bn, with KD938m or 11.4% increase over same period last year.Total shareholders' equity reached KD1.3bn, with KD14m or 1.1% increase over same period last year.

Al-Nafisi highlighted the bank's ability to implement its plans and strategies even in the most challenging of time, which increases the potential of improving financial indicators during the coming period.  (source)

BANKING - Al-Omar: KFH-Turkey achieves TL 195 million net profit with 22% increase in 2011

Chairman of Kuwait Finance House in Turkey (KFH-Turkey) Mohammed Al-Omar.

Iwan: 16 branches in Turkey, plans to expand in Europe

 www.zawya.com - Chairman of Kuwait Finance House in Turkey (KFH-Turkey) Mohammed Al-Omar announced that the bank has achieved TL 195 million net profits in 2011 with 22% increase in 2011. Total assets increased by 54%, and deposits grew by 8%, while revenues increased by 17% compared to last year. The general assembly approved 16% dividends for shareholders. He added that such outstanding results were achieved despite challenging global markets conditions, which cements the fact that the bank is on the right track to becoming one of the best banks in Turkey. (source)

RATINGS - Capital Intelligence upgrades KFH-Turkey's rating

www.zawya.com - Capital Intelligence (CI), the international credit rating agency, announced that ithas raised the Financial Strength rating of KFH-Turkey. The rating is raised to'bb+' from 'bb,' underpinned by its very sound asset quality, good capitalprofile and continued good profitability, and the support rating of '2' is affirmed.

TheLong-term Foreign Currency rating is affirmed at 'bb,' while the Short-termForeign Currency rating is affirmed at 'b,' both at the same level as thesovereign rating. All ratings carry a 'Stable' outlook.  (source)

BANKING - Turkey Finance 2011 profit of 231.6 million pounds - bond in the pipeline

www.finansglobal.com - Increased by 30 percent by 2010 compared to the size of the fund utilization raises billion liras 10:35 Turkey Finance, continues to support the economy and bank customers, an increase of 26.5 percent 13:53 billion pulled in asset size.
Important steps to reach the target point within the next five years that would carry Turkey Derya Gürer General Manager of Financial Participation Bank on the subject: "In 2012 we will be again in a rapid and effective growth strategy. The basis of this growth, largely completed in 2011, the quality of human resource development, expansion of product range, increase the quality of service, branch network expansion and has several projects such as the increase of technological investments. "He said. (source)

BANKING - Turkiye Finans Net profit has increased the bond will be issued

www.dunya.com - ISTANBUL - Turkey Finance 231.6 million pounds in 2011 while net profit increased by 13 percent, the bank plans to issue bonds without interest under the 2012 targets. Director General of Turkey Derya Gürer Financial Participation Bank, the financial results of the assessment year 2011 statement, the interest-free bonoihracı Finance and the bank's growth in Turkey as a base for supplying the necessary preparations took a long-term funds, interest-free bond issuance by the end of 2012 said they would perform.

Gürer also a fast and effective growth strategy in 2012 would be in the SME segment will continue to be one of the priority areas, he added. Turkey Finance, an increase of 13 percent in 2011 over the previous year, achieved a net profit of 231.6 million pounds. Increased by 30 percent by 2011 compared to the size of the fund utilization raises billion liras 10:35 Turkey Finance, an increase of 26.5 percent 13.5 billion pounds in asset size released. (source)

CAPITAL MARKETS - Turkey links GCC interests with KFH Bank plans to issue more sukuk

new.kuwaittimes.net - ISTANBUL: Turkey is one of the few markets that has managed to avoid the negative impact of the global financial meltdown and debt crisis that plagued countries lying in close geographical proximity, asserted Mohammed Al-Omar, Kuwait Finance House (KFH) CEO and KFH-Turkey Chairman. He added that this was a result of Turkey’s experience in handling the crisis, and its success in creating a stable investment environment for local and foreign investors. (source)

CAPITAL MARKETS - Turkey - Factors to Watch on March 12

www.reuters.com - KILER GYO

Kiler GYO, a Turkish real estate investment trust, may issue a sukuk over $100 million in the fourth quarter, Dunya newspaper reported citing parent Kiler Holding chief executive Yunus Nacar. (source)

BANKING - Al Baraka close to issue sukuk

www.hurriyetdailynews.com - Bahrain-based Al Baraka banking group, which operates in 15 countries including Turkey, Syria, Tunisia and Egypt, wants to increase the group’s profits by 15 percent in 2012 and issue $200 million in sukuk bonds for Al Baraka Turkey, the bank’s Turkey arm. (source)

BANKING - Al Baraka eyes more growth, Turkey Sukuk

www.tradearabia.com - Bahraini Islamic lender Al Baraka Banking Group aims for 15 per cent growth in net profit this year and plans to buy a 75 per cent stake in an unlisted Indonesian bank as part of its global expansion plan.

'We are in talks with Chinese shareholders of an Indonesian bank and hope to buy close to 75 per cent stake this year,' Adnan Ahmed Yousif, Al Baraka's chief executive, told Reuters in an interview.

'Our plan is to invest around $100 million in this deal,' he said, noting that the targeted bank, which he declined to name, is a conventional lender that will eventually be converted to Islamic.  (source)

CAPITAL MARKETS - Erdogan Faces Worse Deal in Sukuk Than Dollar Debt Market: Turkey Credit

www.bloomberg.com - Turkey, planning its first sale of bonds that comply with Islamic law, may have to pay about a percentage point more in interest than on bonds sold in dollars that don’t have religious restrictions.

Turkey, the second-biggest Muslim economy after Indonesia, will probably have to pay a minimum of 5.5 percent annually on five-year debt to be attractive, according to Samer Mardini, vice president of fixed-income and Islamic finance products at SJS Markets Ltd. in Dubai. That’s 120 basis points higher than similar maturity dollar debt, data compiled by Bloomberg show.  (source)

CAPITAL MARKETS - Kuveyt Turk says may issue lira sukuk this year

www.reuters.com - Feb 17 (Reuters) - Kuwait Finance House's Turkish bank Kuveyt Turk, which issued a $350 million sukuk last year, may issue a lira sukuk in Turkey this year, Murat Cetinkaya, Kuveyt Turk deputy chief executive, told Reuters.

"This year a lira sukuk issuance is among our priorities," Cetinkaya, who is responsible for treasury, international and investment banking at Kuveyt Turk, said in an interview. (source)

BANKING - Bank Asya press conference

www.bankasya.com.tr  - Bank Asya board member and general manager Mr. Abdullah CELİK held a press conference on 08.02.2012 and the main topics are listed below:

• Bank Asya continues ongoing negotiations with buyers regarding the sale of its Isik Sigorta (Insurance Subsidiary) shares. Depending on the offers, Bank Asya may sell entire of its shares.  (source)

CAPITAL MARKETS - Islamic bond may be linked to third bridge

www.hurriyetdailynews.com - Turkey may issue its first sukuk, an Islamic finance tool, to be linked to the toll revenues of a planned bridge over the Bosphorus, daily Vatan claimed without quoting sources. The Treasury has already started a study on the issue, the newspaper said.  (source)