Kuveyt Turk issues $350 mln in Islamic bonds
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Kuveyt Turk Participation Bank recently issued Islamic bonds amounting to $350 million (sukuk) at a signing ceremony in Istanbul. The participants at the signing ceremony include Capital Markets Board (SPK) President Vedat Akgiray and Kuveyt Turk’s chairman, Mohammad Al-Omar, Vice Chairman Abdullah Tivnikli and CEO Ufuk Uyan, Zaman reported.
They agreed that Islamic bonds were issued taking into account the rising demand for attractiveness of Turkey’s low risk to Islamic and international investors. According to Al-Omar, the sukuk issuance will ensure the development and growth of participation banking in Turkey. Citing sukuk issuance as major source to achieve Turkey’s long-term objectives, he said the company is pleased to provide a $350 million transaction amid time of global financial crisis.
Affirming willingness to cater to needs of both private and public sectors, he said that Turkey is able to attract global investors, including those from the Gulf region. Uyan noted the overall sukuk market has a value of more than $100 billion and stressed Kuveyt Turk’s role in paving the way in securing long-term sources for interest-free banking in Turkey. He said the first sukuk transactions in Turkey were brought by Kuveyt Turk in 2010.