Turkey’s first non-ijara sukuk dissected

Author: Gemma Varriale | Published: 13 May 2013

KEY TAKEAWAYS

  • Turkiye Finans has become the first company to issue a non-ijara sukuk out of Turkey;
  • It paves the way for more innovative structures, as well as a wider variety of sukuk issuers, out of the country;
  • The ijara/murabaha hybrid closed ahead of the introduction of Turkey's ambitious new legislation to expand the range of sukuk structures available to issuers;
  • Adding to Turkey's flurry of activity in the sukuk space, Al Baraka issued a rare tier 2 murabaha in the international markets, just days after the Turkiye Finans deal.

Turkiye Finans has become the first company to issue a non-ijara sukuk out of Turkey. It paves the way for more hybrid structures, and a wider variety of Turkish sukuk issuers.

The debut certificates, listed on the Irish Stock Exchange and due 2018, are worth $500 million. In opening up new funding vistas in Turkey, the...