Success of Turkish Treasury's inaugural Sukuk points to global opportunities and appetite for sovereign Sukuk issues
Liquidity House has just completed a recent mandate for the Turkish government. The firm, alongside Citigroup and HSBC, advised on the Turkish Treasury's recently concluded debut sovereign Sukuk issue, which had an order book almost five times of the issue size, ultimately raising $1.5 billion.
It is expected that the issue will be a gateway for further Sukuk issuances from Turkey with the sovereign issue having paved the way for a fast growing Sukuk market across the already GCC region and Malaysia, in addition to new territories and markets. Strong appetite for the issue came from investors worldwide, with 58% of the certificates having been sold to investors in the Middle East, 13% in Europe, 12% in Asia, 9% in Turkey and 8% in US.
Liquidity House, which is wholly owned by Kuwait Finance House, has been recently mandated with other debut Sukuk issuances for various Sovereigns which will be coming to the market later part of this year or early next year.
He concluded, "With these mandates, we expect to continue to build our capabilities and our roster of clients including regional and global governments, as evidenced in the awards and accolades reaped during our nascent tenure". Sukuk is one of the fastest growing areas within Islamic finance and the success of the Turkey's sovereign Sukuk issue goes to underscore the huge demand for Sukuk not just in the MENA region and Asia, or Islamic countries, but also globally. We expect that many more governments and corporates worldwide will take advantage of this demand in coming months and years and KFH Group and Liquidity House are well positioned to support them.
For its innovative approach and expertise, Liquidity House has won a number of awards for Sukuk structuring and placement.
Liquidity Management House for Investment K.S.C.C ("Liquidity House") is an investment company wholly owned by Kuwait Finance House K.S.C. Headquartered in the State of Kuwait, Liquidity House was established in December 2007 and commenced its operations in September 2008. The company was launched with a paid up capital of Kuwaiti Dinars 100 Million (approx US$ 360 million).
Liquidity House's objective is to be a principal player in the international sukuk market and the Sharia compliant structured finance arena. It seeks to deliver exceptional values to its clients, shareholders and the industry through focused and shared values driven by its parent entity KFH.
Liquidity House's current team has extensive experience within the Islamic Finance space and is a source of strategic strength and it derives benefits from KFH's brand name, distribution capability, and geographic coverage while offering its products and services to its clients.
The experience of Liquidity House's management team with KFH has enabled it to develop a strong network with Financial Institutions across the globe and is a source of strategic benefit to Liquidity House.
© Press Release 2012
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