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)

CAPITAL MARKETS - Turkey takes first steps to Sukuk

www.cpifinancial.net - A statement from the Undersecretariat of the Treasury in Turkey said, “Citigroup, HSBC and Liquidity House (a Kuwait Finance House subsidiary) have been mandated to explore opportunities for a possible Lease Certificate issuance in the international capital markets.” (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)

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)

CAPITAL MARKETS - Turkey reaches $4.5 bln eurobond target, eyes possible sukuk

www.reuters.com - (Reuters) - The Turkish Treasury said on Wednesday it borrowed $1 billion in the reopening of its dollar-denominateed 2041 eurobond with a yield to investor of 5.75 percent, reaching its $4.5 billion eurobond issuance programme target for 2012.
The Treasury said it will seek opportunities for external financing via a possible sukuk transaction or pre-financing for 2013 via conventional bond issues, depending on the market conditions. (Writing by Daren Butler) (source)

CAPITAL MARKETS - TL certificate will be on the basis of the lease, and the dollar

www.dunya.com - ISTANBUL - Deputy Prime Minister Babacan, Treasury certificates to exhibit significant rents, announced that the TL and foreign currency denominated.

Deputy Prime Minister Ali Babacan, Participation Banks Association of Turkey (TKBB) Chairman Fahrettin Yahsi, "the Treasury get the TL to exhibit significant rent certificate" proposal, "From the domestic market will no doubt, but also foreign investors, such as Eurobonds There will also be showing interest in foreign exchange on the basis of "he said.

Babacan, TKBB'nin 11.Olağan General Assembly in his speech, referring to the Treasury to exhibit significant lease certificates, the following made ​​statements: (source)

CAPITAL MARKETS - Turkey sees $16 bln FDI in 2012- Treasury official - Sovereign Sukuk may have some delay

www.reuters.com - May 19 (Reuters) - Turkey expects to receive $16 billion in foreign direct investment this year (FDI), steady from 2011, despite the crisis in the euro zone, a senior official at the Turkish Treasury said on Saturday.
"Turkey is not affected that significantly from deleveraging from Europe, we are not affected the same way as eastern Europe," Evren Dilekli, Director General for foreign economic relations at the Treasury Undersecretariat said. (source)

CAPITAL MARKETS - Turkey may launch sukuk issue within months-Babacan/TV

www.reuters.com - (Reuters) - The Turkish Treasury may launch a sukuk issue within a few months, Turkish Deputy Prime Minister Ali Babacan said on Tuesday in an interview with the broadcaster Kanal 24. (source)

CAPITAL MARKETS - Turkey set to launch sukuk push with 2012 sale

http://en-maktoob.news.yahoo.com.ANKARA, April 17 (Reuters) - The Turkish government will press ahead with its first issue of Islamic bonds this year and the planned sale should encourage private companies to do likewise and boost Istanbul's role as a financial centre, Deputy Prime Minister Ali Babacan said on Tuesday.

The government had said previously it could issue a sukuk in 2012, overcoming sensitivities about Islamic finance in the secular republic as it seeks to tap a rich pool of investors flush with oil money.  (source)

CAPITAL MARKETS - The Turkish Treasury close to launch Islamic rent certificates

www.hurriyetdailynews.com - The Turkish Treasury will soon issue rent certificates, says Deputy Prime Minister Ali Babacan. Introducing sharia compliant investment tools will encourage private sector, he adds.

Turkey should assume its place in the fast-growing market of rent certificates that are compliant with Islamic law, Deputy Prime Minister Ali Babacan said yesterday.

“We find [developing the sukuk market] important in terms of the diversification of financial sources and investment options for both national and international investors. The Turkish Treasury’s move to issue rent certificates will encourage the private sector as well. We have completed regulations on rent certificate issuance,” he said at a joint press conference with Finance Minister Mehmet Şimşek.  (source)

CAPITAL MARKETS - Turkey ready for joint bourse index with Gulf

www.hurriyetdailynews.com - Istanbul Stock Exchange (İMKB) Head İbrahim Turhan said Turkey, Dubai and Abu Dhabi had agreed in principle to launch a joint index, as studies continued for such an attempt with Egypt. Plans for sukuk (Islamic banking) bonds are also on the way, Turhan said, speaking on the second day of the Arab-Turkish Banking and Finance Forum in Istanbul. (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 - 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.

The paper said Deputy Prime Minister Ali Babacan’s Jan. 30 speech at a Capital Markets Board (SPK) meeting in Istanbul was a signal for the attempt. Turkey may issue its first sukuk this year, Babacan said at the meeting. (source)

CAPITAL MARKETS - Turkey to overcome secular qualms with Islamic bond

www.reuters.com -
* Sovereign sukuk in 2012 could raise several billion dollars
* Would pave way for corporate issues, set benchmark
* Could be used to fund large projects
* Turkish non-financial firms keen to tap market

By Seda Sezer and Nevzat Devranoglu

ISTANBUL, Feb 22 (Reuters) - Turkey's government plans its first-ever issue of Islamic bonds this year, overcoming sensitivities about Islamic finance in the secular republic as it seeks to tap a rich pool of investors flush with oil money.

A sovereign sukuk issue from an economy regarded as one of the most progressive and successful in the Muslim world would signal intent on Turkey's part to play a bigger role in Islamic finance. The size of the global sukuk market is estimated at more than $100 billion.

"It will be like ringing a bell and attracting all the attention," said Murat Cetinkaya, deputy chief executive for treasury at Kuveyt Turk, an Islamic bank that has been a trend-setter for corporate sukuk issues in Turkey. (source)

CAPITAL MARKETS - TRADE - FINANCE - Turkey offers Gulf ‘perfect match-up’

www.hurriyetdailynews.com - Trade between Turkey and the Gulf offer more than the energy business, say Turkish ministers. Turkey’s plans include restoring a historic rail line to the Gulf

TOBB President Rifat Hisarcıklıoğlu (R) presents Finance Minister Şimşek (C) with a gift at the Turkey-Gulf Business Forum. AA photo (source)

CAPITAL MARKETS - Turkey works on issuing rent certificate: deputy PM

www.worldbulletin.net  - "We hope to make the legal arrangement and issue the first certificate within this year," Babacan said during First Business Forum of Turkey-Cooperation Council for the Arab States of the Gulf in Istanbul.

Turkey's deputy prime minister said on Tuesday that Turkey was working on a more flexible legal arrangement that would enable foreigners to purchase real estate in the country.

Ali Babacan said that Turkish Treasury was working on issuing a rent certificate,.  (source)

ARTICLES - TURKEY: A Special Dynamic to Islamic Finance

As the direction of world trade once again shifts, Turkey, on the borders of Asia and Europe, stands to reap the rewards. SCOTT WEBER looks at a possible Ottoman economic resurgence.

Participation banking in Turkey originates from a 600-year history of raising capital utilizing traditional Islamic contracts, networking and subcontracting. Islamic financing emerged as the result of Muslim entrepreneurship, SMEs and traditional business networks� desire to raise capital in a closed, centralized Turkish market.(source)