CAPITAL MARKETS - Kuveyt Turk issues $350 million Sukuk

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

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)

BANKING - Turkey's bank Albaraka will improve its bottom line by 38.7% in 3Q11-Erste

We expect the bank to improve its bottom line by 38.7% in 3Q11 to TRY 42mn; which also marks 26% y/y growth, mainly driven by strong top line profitability. The bank's volume growth performance should be in line with its peer average. We also foresee 5% quarterly growth in total loans.  (source)

CAPITAL MARKETS - Kuveyt Turk - Bond issuers turn to Malaysia, Asia

Today, Kuveyt Turk Participation Bank (KTPB), which is majority owned by Kuwait Finance House, one of the largest Islamic banks in the world, launches its roadshow for its proposed 5-year $350 million Sukuk Al-Ijara issuance. The fact that the roadshow is starting in Kuala Lumpur, Malaysia is revealing in that issuers from the Middle East, largely from the Gulf Cooperation Council (GCC) countries and now Turkey for the first time, are turning to investors in Malaysia and Asia to raise their funding requirements.  (source)

ARTICLES - Forbidden fruit: Turkey’s tempting Islamic banking sector

IFN.COM - Cover Story - 29-Aug-2011 - Volume8.Issue34

Forbidden fruit: Turkey’s tempting Islamic banking sector economic powerhouse

Turkey has been one of the few economic success stories emerging from the recession, with the highest economic growth rate in the world (11%) in Q1 2011. Despite a dip in 2008 with GDP contracting 14.6%, the economy rapidly returned to growth and GDP grew by 8% in 2010 with a 5% expansion predicted for 2011. Turkish banks were largely unaffected by the global financial crisis, with limited exposure to toxic securities and high retail deposit levels providing a liquidity buffer. The regulator maintains firm control with a focus on preventing excessive credit growth and a ban on foreign currency retail lending, meaning that banks have experienced little funding stress.  Fitch Ratings recently changed Turkey’s ‘BB+’ sovereign rating outlook from stable to positive suggesting that a future upgrade could be on the cards, which will only enhance Turkey’s attractiveness to foreign investors. (source)

SUKUK - Turkish delight

HABIB SHAIKH (Souq Sukuk) 6 November 2010

Raising finance through a sukuk can be a key contributor towards Turkey’s long-term funding requirements in the global sukuk market that took place recently was the launch of a three-year $100 million Wakala sukuk on August 23, by Istanbul-based Kuveyt Turk Participation Bank, in which global Islamic banking major, Kuwait Finance House, or KFH, has a controlling 62 per cent equity stake.

SUKUK - Sukuk Developments: Hybrid Structures and Malaysian Expansion

Qatar’s $3.5 billion conventional bond issue may be the season’s most noteworthy Islamic finance deal. Malaysia, issuer of 75% of the world’s sukuk, has flexed even more muscle as it branches into the nascent Islamic finance market of neighboring Singapore. Anecdotally, these offerings are noteworthy; collectively, they may help ameliorate some high-profile setbacks for the industry.