BANKING - Islamic bank Kuveyt Turk plans launch in Germany

www.kippreport.com -Hopes to apply for full banking licence in October; Will be headquartered in Frankfurt; To target non-Muslims as well as Muslims

September 11, 2012 9:59 by Reuters

Turkish bank Kuveyt Turk plans to launch Germany’s first full-fledged Islamic bank, aiming to tap into demand for ethical finance in the wider population as well as within Europe’s second-largest Muslim community.
The bank, which has had a presence in Mannheim since 2010, hopes to apply for a full banking licence in October and will be headquartered in Frankfurt. (source)

CAPITAL MARKETS - Sukuk income to be injected to giant projects

www.invest.gov.tr  -Hurriyet - According to the bankers, Turkey will secure financial resources from a brand-new sector with its new Islamic banking product and that the country can finance mega-projects such as the construction of the third bridge with this income. The total volume of global sukuk issuance was around USD 90 billion in 2011, whereas the same amount was achieved during the first six months of this year. Meanwhile, Qatar hit a record issuance worth a total of USD 4 trillion in July, and the size of the Islamic financial services sector is expected to reach USD 2.8 trillion by 2015. Turkey, which has so far lagged behind in the sector, is now taking the first step to close the gap. (source)

CAPITAL MARKETS - Turkey seeks advice on its proposed sovereign sukuk

www.saudigazette.com.sa -LONDON – The announcement by the Turkish Treasury a few days ago that it had mandated Citigroup, HSBC and Liquidity Management House (LMH), the investment bank subsidiary of Kuwait Finance House, “to explore opportunities for a possible Lease Certificate issuance in the international capital markets” could not be more Turkspeak.

In reality the mandate is to advise and structure the proposed debut sovereign Sukuk Al-Ijara of the country, the first time that secular Turkey would raise funds from the international market through the issuance of Islamic leasing certificates (Sukuk Al-Ijara).  (source)

RATNGS - Moody's assigns (P)Ba1 rating to Turkey's upcoming sovereign sukuk; positive outlook

www.moodys.com -London, 05 September 2012 -- 5 September 2012 -- Moody's Investors Service has assigned a provisional foreign currency rating of (P)Ba1 to Turkey's proposed US dollar-denominated sovereign sukuk. The outlook is positive.
RATINGS RATIONALE
In Moody's opinion, the obligations that would be incurred by the sukuk rank pari passu with other senior, unsecured debt issuances of the Republic of Turkey and therefore carry the same rating. Moody's expects to remove the provisional status of the rating upon the closing of the proposed issuance and a review of its final terms. (source)

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)