Following last year's first sukuk issuance in Turkey and Europe, Kuveyt Türk starts the investor meetings with natural and legal persons operating at abroad for the second sukuk transaction, in line with the new legislation.
To be issued by KT Sukuk Varlık Kiralama A.Ş., a Turkey-based asset leasing company established pursuant to the Communiqué on Lease Certificates of the Capital Markets Board (CMB), this will be the first 5-year-term sukuk transaction in Turkey.
Having concluded within last year a $100 million sukuk issuance, a first both in Turkey and Europe, Kuveyt Türk will ¬hold meetings in prominent financial centers in Asia, Gulf Region, and Europe to come together with the global investors for the second sukuk transaction. Fitch Ratings made a statement on this transaction for which Abu Dhabi Islamic Bank, HSBC, Liquidity Management House, and Standard Chartered Bank have been appointed as promoters and indicated that the planned issuance was expected to be rated with "BBB-" in line with the rating of Kuveyt Türk. In addition to providing information on the structure of the targeted issuance, the statement also pointed out that the final rating will be announced upon the completion of the related documents. While "BBB-", predicted by Fitch Ratings, indicates "investment" grade, Kuveyt Türk, currently assigned with the same rating, is at one level above the foreign-exchange rating of Turkey.
We aim to bring the long-term funds into the economy
Kuveyt Türk CEO Ufuk UYAN said, in his assessment, that, "Upon the interest shown to the first sukuk issuance we realized in 2010 and via the capital markets, Kuveyt Türk reached a significant point in preparatory works for a new issuance, in line with our target to bring the long-term funds into the Turkish economy. Following meetings to be held with global investors in financial centers, we aim to reinforce our leadership in this area with this second issuance planned to be realized pursuant to the new legislation."
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© Press Release 2011
