Turkiye Finans gets nod for 71 mln lira sukuk


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

Save 30% and win Bosch appliances! More Info

Monthly Plan

RM13.90/month
RM9.73 only

Billed as RM9.73 for the 1st month then RM13.90 thereafters.

Annual Plan

RM12.33/month
RM8.63/month

Billed as RM103.60 for the 1st year then RM148 thereafters.

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Others Also Read


Want to listen to full audio?

Unlock unlimited access to enjoy personalise features on the TheStar.com.my

Already a member? Log In