Year on Year Profits up 20 per cent as 90 day Sukuk Issued

Kuveyt Türk, the Turkish participation bank has issued a Turkish Lira denominated Sukuk for TL150m. The 90 days issuance with a maturity of 90 days received demand of around TL200 million from a book building exercise which stated on September 15 to qualified investors.

Sukuk are referred to as lease certificates in Turkey, and Kuveyt Türk which is majority owned by Islamic finance powerhouse Kuwait Finance House has been a regular issuer in 2015. This issuance follows a successful offering completed in September for TRY150 million. Earlier in the year, the bank issued a Malaysian Ringgit sukuk for 300 million ringgit.
Kuveyt Türk stated it aims to issue up to 1 Billion of locally denominated Turkish Lira sukuk by end of 2015.

Strong Sukuk Demand

Noting the demand by investors towards the issuance, given the current economic and political outlook, indicates the level of confidence in the bank, CEO of Kuveyt Türk, Mr. Ufuk Uyan said, “We highly appreciate that lease certificates gain depth day by day as an interest-free capital market product. While our subsidiary Katılım Emeklilik ve Hayat A.Ş. operating on an interest-free banking principle is active in the Individual Pension System (BES) sector, we have recently established a portfolio management company called KT Portföy Yönetimi A.Ş. With the growth of funds managed by such companies, we estimate that the demand for the issue of lease certificates will further grow.”

Emphasizing that Kuveyt Türk has reached 1,6 billion TL so far in lease certificate issuances first launched in 2013 in the domestic market, Mr. Uyan added, “Around 70% of the total 1,6 billion TL amount raised thus far comprises solely net new funds. Currently, our lease certificates of a total of TL 3,7 billion are traded in the market in different currencies such as US Dollar, Ringgit Malaysia and Turkish Lira. We intend to continue to provide further opportunities to invest in such alternative capital markets products throughout the year via public offering and sales to qualified investors.”

Kuveyt Türk’s net profit reaches 341 million TL in the first 9 months of 2015

Kuveyt Türk has increased its net profit to TL 341 million in the first 9 months of 2015 with an increase by 20 percent as compared to the same period last year. Kuveyt Türk has increased its total assets to 43 billion 565 million TL in the first 9 months of 2015 with an increase by 26.6 percent compared to the year-end figures of 2014. Our bank also increased its shareholders’ equity to 3 billion 293 million TL with an increase by 8.9 percent. The funds collected by the bank have reached 28 billion 568 million TL increasing by 29 percent and the funds made available have reached 26 billion 864 million TL increasing by 26.2 percent in the same period.