Lease certificate (sukuk) of TL160 million

Kuwait, July 29th 2015: Kuwait Finance House Turkey KFH-Turkey has issued a lease certificate (sukuk) of TL160 million with a tenor of 189 days through an initial public offering that achieved a record-breaking highest amount realized so far in Turkey

The issuance, structured in accordance with participation banking principles, is the biggest ever lease certificate (sukuk) issuance in TL by the private sector in the domestic market.

Operating with the "robust banking" model in Turkey, KFH-Turkey has surpassed its previous issue size of TL150 million in 2013 with its current issuance of TL160 million with a tenor of 189 days which is structured in accordance with participation banking principles. Halk Yatırım Menkul Değerler A.Ş. was the consortium lead and Bizim Menkul Değerler A.Ş. was the consortium partner in this issuance.

The principal and lease yield is to be paid at one time at the end of the maturity.

Commenting on the initial public offering process, Ufuk Uyan, the CEO of KFH-Turkey, explained that the lease certificates were issued by KT Kira Sertifikaları Varlık Kiralama A.Ş., a 100 percent subsidiary of KFH-Turkey.  Explaining that the revenues derived from the assets acquired by KT Kira Sertifikaları Varlık Kiralama A.Ş. would be distributed to the certificate holders, Uyan said, "At the end of the maturity, the underlying assets shall be transferred back to the sourcing entity. The principal and lease yield shall be paid to the investors in one go at maturity. The issuance of the lease certificates, with a gross annual yield of 10.63 percent, was also achieved at a cost that is lower than similar transactions realized recently." Stating that Kuveyt Turk had been the first to enter the sukuk market in 2010, marking another first in Turkey, Uyan added, "KFH-Turkey has thus far issued sukuk with an aggregate value of around TL4,2 billion in Turkey and abroad.  Going forward, we will continue to contribute to the sukuk markets." 

Kuwait Finance House (KFH)
KFH was established in Kuwait in 1977 and is enlisted in the Kuwait Stock Exchange. KFH Group is a global pioneer in the field of Islamic banking services, where it offers a wide array of Islamic products and services, not to mention a high standard of innovation and client service.

KFH manages its operations in the GCC, Asia, and Europe through over 380 branches, including KFH-Turkey, in order to offer services for the bank's clients in Turkey, Malaysia, Saudi Arabia, Bahrain, Australia, Jordan, Dubai, and Manheim in Germany.

KFH's mission is to achieve highest levels of excellence and innovation in the field of client service, while developing common interest for all those concerned with the financial institution. KFH's vision is to spearhead the global development in Islamic financial services, and to upgrade the bank into the level of becoming the most sustainable profitable Islamic bank in the world.

KFH's values include cementing leadership through all its businesses, including leadership in the Islamic banking services worldwide, through innovation and in client service and the development of its employees. In addition, KFH is committed to all its procedures, and to setting up long-life partnerships with the concerned authorities.

For more information, please visit: www.kfh.com

© Press Release 2015