Kuveyt Turk Participation Bank issued $350 million worth of Islamic bonds, also called sukuk, at a signing ceremony held on Tuesday in İstanbul.
Capital Markets Board (SPK) President Vedat Akgiray and Kuveyt Turk’s chairman, Mohammad Al-Omar, Vice Chairman Abdullah Tivnikli and CEO Ufuk Uyan were in attendance at the ceremony, agreeing that the sukuk issuance should be seen in the context of the growing demand for the attractiveness of Turkey’s low risk to Islamic and international investors.
Al-Omar underlined that the sukuk issuance will help in the development and growth of participation banking in Turkey, saying, “This is a major source in the frame of Turkey’s long term development goal, and we are glad to provide a $350 million transaction during a time of global financial crisis.” He commented, “Turkey is able to attract global investors, including those from the Gulf region, and we are ready to provide for the needs of the public and private sectors.”
Uyan noted the overall sukuk market has a value of more than $100 billion and emphasized Kuveyt Türk’s role in paving the way in securing long-term sources for interest-free banking in Turkey. He said both sukuk transactions in Turkey, with the first one issued in 2010, were brought by Kuveyt Türk, which plans to share know-how as well as consulting services with other firms concerning sukuk. Uyan also drew attention to the competitive pricing, which he said reflects trust in Kuveyt Türk.