The Türkiye Wealth Fund (TWF) has secured a five-year murabaha financing agreement worth $600 million (TL 24.40 billion) with a consortium of banks led by Kuwait Finance House (KFH), it announced on Wednesday.
The financing arrangement, which TWF says sets an example for institutions in Türkiye in terms of its maturity and size, does not include any collateral or guarantees and has been secured under favorable and market-aligned conditions, the statement said.
Murabaha financing is a Shariah-compliant financial structure widely used in Islamic banking. It's a form of cost-plus financing, where a bank or financial institution purchases an asset and then sells it to the customer at a pre-agreed profit margin.
With this agreement, TWF's total funding raised through Islamic finance instruments has now surpassed $1.8 billion, it noted.
The Türkiye Wealth Fund was founded in 2016 by the government to develop and increase the value of the country's strategic assets and provide resources for investment.
The fund has a portfolio of assets including 31 companies operating in sectors from telecommunications, financial services, transportation, logistics, steel and energy.
