Kuveyt Türk, the largest participation bank in Turkey in terms of total assets, has announced the issuance of a five-year USD denomination Reg S Sukuk. The total amount of the issuance was USD 500 million with a return rate of 5.162 percent while total demand rose over six-fold due to high investor interest despite the competitive pricing.
Ufuk UYAN, the CEO of Kuveyt Türk said that the issuance drew great interest from international investors in Europe and Asia as well as the Middle East, receiving orders from over 170 accounts, a clear indication of Kuveyt Türk’s well-diversified investor base. The closing of the order books provided for a 45% allocation to Middle East investors and 55% to other international investors comprising 20% UK, 17% Asia, 12% Switzerland, 5% Europe and 1% other international accounts.
He added “We are extremely pleased with the level and wide geographical diversity of demand for Kuveyt Türk’s third international issuance of Sukuk certificates. The certificates are likely to be more liquid as compared to those issued previously and set a new benchmark for Sukuk offerings out of Turkey. As with prior issuances, international investors have reiterated their confidence in Kuveyt Türk. The continued support and development of the participation banking sector in Turkey has been instrumental in making such international Sukuk issuances a great success.”
Moreover, he noted that Kuveyt Türk appointed Kuwait Finance House Investment Company “KFH Investment” as the Sole Global Coordinator for the issuance provided the transaction with international strategic oversight as well as ensuring a smooth and timely execution.
Meanwhile, “KFH Investment” CEO and Board Member, Imad Yousef Al-Maneea, stated that sukuk are important products that can provide significant financing solutions, especially in light of the unfavorable circumstances in the global economy. He added that the increased investors’ confidence of sukuk that are backed by real assets, and its remarkable growth globally, allow them to be a financing choice to be sought.
Al-Maneea explained that “KFH Investment” succeeded in organizing and marketing these sukuk for Kuveyt Türk for the third consecutive time in a period of 3 weeks and competitive prices despite the critical political circumstances that face the region.
It’s worth noting that Kuwait Türk had appointed Citigroup, Emirates NBD Capital, HSBC, Kuwait Finance House Investment Co. and Standard Chartered Bank as Joint Lead Managers / Book Runners; ADIB, DIB & QNB Capital LLC as the Joint Lead Managers; and Commercial Bank International PSC, QInvest LLC as Co-Managers.