Turkiye Finans gets nod for 71 mln lira sukuk

  • Business Premium
  • Monday, 24 Nov 2014

Turkish Islamic lender Turkiye Finans has received regulatory approval to raise 71 million lira ($31.5 million) via sukuk, or Islamic bonds, according to Turkey's Capital Markets Board.

The sukuk will be issued through TF Varlik Kiralama, a wholly-owned unit of Turkiye Finans, which last year set up a 100 million lira sukuk issuance programme. No time frame was given for the deal.

The bank, majority owned by Saudi Arabia's National Commercial Bank, is one of four Islamic banks in the country, with a sole focus on loans to corporate clients.

Sukuk are increasingly being used by Islamic banks as the industry expands, helping diversify funding sources away from syndicated loans. As of September, Turkiye Finans saw assets grow by 35.4 percent from a year earlier.

The bank also plans to issue by year end $50 million worth of ringgit-denominated sukuk in Malaysia, a market which it first tapped in July.

Separately, three Turkish state-run banks plan to launch their own Islamic units, moves which are expected to increase competition in the sector and raise operating costs for incumbents. ($1 = 2.2216 Turkish lira)- Reuters

Article type: metered
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Grab slumps in US debut after record SPAC deal Premium
Oil ends higher after a day of wild swings on OPEC, Omicron Premium
Sugar price hits four-month lows as Omicron fears persist Premium
Powell pivot crushes yield curve, deepens bond market conundrum Premium
-Wall Street ends higher in robust rebound from Omicron-driven rout Premium
Earnings recovery in Q3 Premium
China advisers to recommend lower 2022 GDP target as headwinds grow Premium
Strong rebound on the cards Premium
Sunway Carnival Mall to double retail space in expansion drive Premium
Earnings boost from vaccine sales Premium

Others Also Read