News Column

$350m sukuk success for Al Baraka Turkey unit

July 2, 2014

MANAMA: Al Baraka Banking Group announced its Turkish subsidiary, Al Baraka Turk Participation Bank, has successfully completed issuance of sukuk worth $350 million.

The sukuk al wakala-murabaha was heavily oversubscribed, with value of subscription reaching $750m.

The issuance was through the bank's leasing subsidiary, Bereket Varlik Kiralama, while the obliger is Al Baraka Turk Participation Bank.

The issue rated BB by Standard & Poors, is listed on the Irish Stock Exchange and carries profit rate of 6.25 per cent per annum for a period of five years.

Many banks, financial institutions and investment funds from different main world financial centres participated in the issue with 61pc of them being from Middle East, 31pc from Europe and 8pc from Asia.

The joint lead managers of the issue were Emirates NBD Capital, Nomura, QInvest and Standard Chartered Bank.

In terms of investors, 80pc were banks and financial institutions, 8pc funds, 6pc hedge funds and 6pc agencies.

"We are delighted at the success of the sukuk, given the prevailing fluctuations in financial markets and world economic conditions," Al Baraka Banking Group president and chief executive and Al Baraka Turk Participation Bank chairman Adnan Ahmed Yousif said.

"This endorses the strength of the position and reputation of Al Baraka Turk Participation Bank in the Turkish market," he added.

Last year, the bank expanded its investment and financing portfolio.

As a result, Al Baraka Turk's total operating income increased by 35pc to $447m. Net income was $121m, an increase of 19pc compared with the same period of 2012.

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Source: Gulf Daily News (Bahrain)

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