Türkiye's Vakıf Katılım has successfully completed the issuance of a $500 million (TL 20.86 billion) Additional Tier 1 (AT1) capital-eligible sukuk, marking a significant milestone as the largest transaction of its kind ever executed by a participation bank in Türkiye, the bank said Wednesday.
"This landmark issuance attracted strong interest from a broad base of over 80 international investors, spanning the Gulf Cooperation Council (GCC), the United Kingdom, continental Europe and Asia," it said in a statement.
Total demand reached an impressive $1.8 billion, more than 3.5 times the issued amount, underscoring global investor confidence in both the institution and the Turkish financial system, it added.
"Notably, the transaction stands out not only as the largest publicly issued AT1 Sukuk in Türkiye, but also as the most competitively priced to date within its category," said Vakıf Katılım, one of the leading participation banks in Türkiye.
Sukuk is the Arabic name for financial certificates, also commonly referred to as "sharia-compliant" bonds.
HSBC, Emirates NBD and Standard Chartered Bank acted as Joint Global Coordinators on the transaction, the bank also said. They were joined by Abu Dhabi Islamic Bank, Arqaam Capital, Bank ABC, BBVA, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, KFH Capital, Mashreq and Warba Bank as Joint Bookrunners.
Commenting on the transaction, Mehmet Ali Akben, CEO of Vakıf Katılım, stated: “Through the innovative products and services we continue to develop, our ambition is not only to meet the evolving needs of our clients, but also to further reinforce confidence in the participation banking sector as a whole."
"The overwhelming demand for our $500 million AT1 Sukuk is a clear demonstration of the trust placed in our institution by international investors, as well as in the long-term strength and resilience of the Turkish economy," he added.
"Backed by our deep-rooted heritage, we remain committed to sustainable growth, contributing meaningfully to the advancement of our sector and the broader economic and social development of Türkiye.”
