KFH arranges in cooperation with Citigroup and HSBC the first Sukuk issuance for the Turkish Treasury of $1.5bn
- Kuwait: Sunday, September 30 - 2012 at 09:55
- PRESS RELEASE
Kuwait Finance House "KFH" represented by its subsidiary, Liquidity Management House "LMH", succeeded in arranging for Ijarah Sukuk for the Turkish Treasury amounting $1.5bln for 5½ years, in cooperation with Citigroup and HSBC, where this is the first issuance of its kind for the Government of Turkey.
This typical issuance is a fruit of cooperation between many entities, particularly the Turkish Treasury that exerted great efforts to develop legislative and regulatory frameworks for the issuance of this sukuk and other instruments. Furthermore, if the government of Ankara wishes any further issuance, now it has a clear and steady legislative building could enables Turkey to become an important and prominent market for sukuk issuance. Thus, Turkey will benefit from the high demand for this product from investors in the region and the whole world.
In this regard, KFH expresses through its subsidiary LMH its readiness to assist the governments wishing to introduce sukuk, which are considered the Shara'i alternative to bonds, to their economic systems. They also can benefit from the advantage of the high financing capacity of sukuk in promoting the national economy and providing alternative funding.
The annual rate yield on these sukuk is 2.8% and to be distributed every 6 months. As for the geographical participation, the largest share is coming from the Middle East with 58%, followed by Europe (13%), then Asia (12%), Turkey (9%) and USA (8%).
As for the investors' type, the largest share is for banks (59%) followed by asset managers (22%). Moreover, international institutions and central banks formed 10%, then wealth managers (5%), and finally hedge funds (4%).
LMH in 2010 arranged in coordination with Citigroup first Sukuk issuance in Turkey of USD100mln for the benefit of KFH - Turkey, a bank operating in Turkey and KFH owns 62.4% of the bank's share. Furthermore, LMH in cooperation with HSBC and Standard Chartered Bank has arranged for sukuk issuance for KFH-Turkey in 2011 amounted $350m.
Articles in this section are primarily provided directly by the companies appearing or PR agencies which are solely responsible for the content. The companies concerned may use the above content on their respective web sites provided they link back to http://www.ameinfo.com
Any opinions, advice, statements, offers or other information expressed in this section of the AMEinfo.com Web site are those of the authors and do not necessarily reflect the views of AME Info FZ LLC / 4C. AME Info FZ LLC / 4C is not responsible or liable for the content, accuracy or reliability of any material, advice, opinion or statement in this section of the AMEinfo.com Web site.