KFH Turkish unit plans lira sukuk this year
Istanbul, February 18, 2012
Kuwait Finance House's Turkish bank Kuveyt Turk, which issued a $350 million sukuk last year, may issue a lira sukuk in Turkey this year, Murat Cetinkaya, Kuveyt Turk deputy chief executive, told Reuters.
'This year a lira sukuk issuance is among our priorities,' Cetinkaya, who is responsible for treasury, international and investment banking at Kuveyt Turk, said in an interview.
'There is a need for a lira sukuk in the domestic market. A lira sukuk would provide an opportunity to individual or institutional investors who are looking for an interest free instrument.'
The Islamic lender is also working with Turkey's Capital Markets Board and Istanbul Stock Exchange for a dual listing of its sukuks on the London and Istanbul stock exchanges, Cetinkaya said.
A $350 million sukuk issued by Kuveyt Turk in October was the country's first asset-backed sukuk. The Islamic lender also issued a $100 million sukuk, the first sukuk in Turkey, in 2010. Both sukuks are listed on the London Stock Exchange.
Kuveyt Turk also plans to provide consulting services to firms who plan to issue sukuk, Cetinkaya said.-Reuters