Kuveyt Turk prices $350 mln sukuk at par

Published 21.10.2011 09:35

Kuveyt Turk, the Turkish arm of Kuwait Finance House, has priced its $350m five-year sukuk, lead managers said in a document on Thursday.

The paper priced at par with a spread of 447.5 basis points over midswaps and carried a profit rate of 5.875 percent.

HSBC Bank , Liquidity Management House and Standard Chartered were bookrunners on the transaction, with Abu Dhabi Islamic Bank and Commerzbank joining the trade in a lead manager capacity.

The sukuk has been rated BBB- by Fitch Ratings.

Last year, the Capital Markets Board of Turkey (SPK), the regulatory and supervisory authority in charge of the securities markets, published a statement setting the legal ground for sukuk issues by Turkish companies. Turkey, which is careful to preserve its secular stance on politics and finance, refers to sukuks as participation certificates and Islamic banks are called participation banks.

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