IslamicFinance.de

Turkish Islamic bank Turkiye Finans is in the final stage of preparing a sukuk issue which is planned to have a volume of around 100 million lira ($55 million). The bank, majority owned by Saudi Arabia's National Commercial Bank, could make the issue within several weeks if market conditions are right. Is Investment is mandated for the issue.

Al Baraka Turk, a unit of Bahraini lender Al Baraka, said on Wednesday it had started work on establishing a joint private pension company with Kuveyt Turk. The bank made the statement to Istanbul Stock Exchange. Turkish lender Kuveyt Turk is 62 percent owned by Kuwait Finance House.

The Banking Regulation and Supervision Agency (BDDK) announced on February 13 that the Islamic financial services segment grew 12.6% in 2012. Total assets reached TL1.3bn ($0.72bn), driven largely by growth in the second half of the year, according to Mükim Öztekin, president of the BDDK. Expansion was due to a change in the perceived level of risk in the country, he added, together with an acceleration of capital inflow, decreasing interest rates and the overall economic growth trend. According to BDDK, sector profits hit TL23.6bn ($13.10bn) in 2012, up 19.2% on the TL3.8bn ($2.11bn) posted the previous year. Equity capital, meanwhile, increased by 26% to reach TL182bn ($101.13bn). While conventional banking assets and profits are growing at a steady pace, the Islamic finance segment has been earmarked as the industry’s next big growth story.

Turkish Islamic lender Bank Asya said on Monday it had mandated banks for a subordinated sukuk issue worth up to $300 million with a ten-year maturity. The lender made the statement to the Istanbul Stock Exchange. Strong investor demand and a need to improve capital adequacy ratios are causing Turkey's Islamic banks to consider issuing subordinated sukuk.

Albaraka Turk mandated four banks to secure a $200 million subordinated loan from international sukuk markets. Albaraka Turk is the Turkish subsidiary of Bahraini lender Al Baraka Bank.

The Turkish Economy Minister Zafer Ça?lyan signed a memorandum of understanding (MoU) with the members of the Islamic Development Bank (IDB) on March 2 during a recent visit to Saudi Arabia. Through the MoU, he is aiming to form new trade and investment ties with the Islamic world. It includes the detection of fields of cooperation between the countries to encourage bilateral trade and investments. Moreover, Ça?layan called for Turkish contractors to take a share from Saudi Arabian infrastructure investments in order to reach $1 trillion in 20 years.

Kuwait Finance House (KFH) Turkey maintained its growth in 2012 and increased its profits to TL250m, 28% increase compared to 2011, according to KFH CEO and KFH - Turkey Chairman Mohammed Sulaiman Al-Omar. Moreover, the bank increased its assets by 27% to TL19bn and its loans by 14% to TL12bn and capital adequacy ratio stood at about 14%. He added that the results achieved were in accordance with the plans, targeted shares, development projects and restructuring programme. The bank also targeted markets in the neighboring countries of Turkey and enhance cooperation and partnership relations with many economic and commercial activities, as well as presenting new products.

Recep Tayyip Erdogan, the prime minister of Turkey, reinforced his credentials as a political leader of the Muslim world at the Sharjah Government Communication Forum this week. Besides championing of political causes in the region, he used the forum for the enhancement of his country's economic and trade relations with GCC states. A memorandum of understanding signed by investment officials from Turkey and Sharjah aims to extend further the business relationship between Turkey and a UAE emirate. Mr Erdogan certainly seems to have pulled back from full-blown commitment to a Europe-orientated strategy. In contrast, trade and economic relations to the south-east are blossoming.

Strong investor demand and a need to improve capital adequacy ratios are causing Turkey's Islamic banks to consider issuing subordinated sukuk. Ibrahim Oguducu, head of the financial institutions business at Bank Asya, said longer-tenor subordinated sukuk would help balance mismatches between the maturities of banks' liabilities and assets, while diversifying their funding sources. Subordinated issues might not be expensive for Turkey's Islamic banks that have issued only two sukuk so far.

Bank Asya plans to open 30 new branches and hiring 500 new staff members according to Ahmet Beyaz, the new General Manager. Abdullah Çelik is the general manager for Asia, who reported about the opening of the Erbil office and plans for India and Asia in general.

For the second time, the Turkish Bank Asya will try to issue a debut dollar-denominated sukuk worth up to $300m. The issuance is planned for the first quarter of 2013. The sukuk is expected to bring up to TL150m ($57m) of lira denominated paper.

Global Islamic banking assets are expected to reach over $1.8 trillion in the coming year. This forecast by Ernst & Young is significantly higher than some industry estimates published earlier. The Islamic banking industry continuously grows worldwide and manages to sustain its quick pace. The top 20 Islamic banks demonstrate growth rates of 16% during the last three years. Saudi Arabia appears to be the largest market for Islamic assets.

World Bank has published a new book concerning Takaful and Mutual Insurance. The book shall increase the understanding, appreciation, and discussion of the challenges and solutions which concern development and implementation of takaful.

According to a report by Trade Arabia, Türkiye Petrol Rafinerileri has signed a 1-year facility worth USD 200 million with a group of nine banks from the Gulf region. The sole bookrunner and structuring advisor to Tüpra? was QInvest. Lead arrangers of the deal were Ahli United Bank, Al Hilal Bank, Doha Bank and Dubai Islamic Bank. The rest of the banks involved in the facility are Qatar Islamic Bank, Barwa Bank, The Commercial Bank of Qatar and First Gulf Bank.

Islamic International Rating Agency (IIRA) made an upgrade to the ratings of Kuveyt Turk Katilim Bankasi (KTKB) on the national scale from 'A/A-2' (tr) (Single A/ A-Two) to 'A+/A-1' (tr) (Single A Plus/ A-One). Both foreign and local currency ratings have been reaffirmed on the international scale at 'BBB-/A-3' (Triple B Minus/ A-Three) and 'BBB/ A-3' (Triple B/ A-Three), respectively. The outlook on the ratings is said to be stable. Even though the Turkish economy has shown resilience in the backdrop of global economic challenges, due to the policy measures taken in 2011, it can expected for the GDP growth to endure moderation.

Turkish oil refiner Tupras signed a one-year loan of $200 million with nine GCC banks. The deal was arranges by Qatar's QInvest. Further information on the purpose and pricing of the facility was not given. The loan was joined by Barwa Bank, Commercial Bank of Qatar, First Gulf Bank, Qatar Islamic Bank , Ahli United Bank, Al Hilal Bank, Doha Bank and Dubai Islamic Bank. Citigroup Inc and Deutsche Bank were mandated by Tupras to arrange a series of investor meetings concerning a potential bond issue.

Read more on: http://uk.reuters.com/article/2012/10/21/turkey-tupras-loan-idUKL5E8LL05...

Turkish refining company Türkiye Petrol Rafinerileri (Tüpra?) has signed a $200 million, one-year facility with a group of nine banks from the GCC region. The sole bookrunner and structuring advisor was Qatari investment bank QInvest. The list of GCC banks includes Qatar Islamic Bank, Barwa Bank, The Commercial Bank of Qatar and First Gulf Bank. The lead arrangers of the deal are Ahli United Bank, Al Hilal Bank, Doha Bank and Dubai Islamic Bank.

Read more on: http://www.tradearabia.com/news/OGN_224297.html

Turkish Airlines discusses the possibility of issuing a sukuk aiming to provide financial means for the purchase of aircraft, necessary because of the company's expansion. So far, they are examining markets in order to make a decision. For the purpose considered multibillion will be needed. Last year sovereign issuance drove the sukuk market last year to a height US$85bn more than the year before, which constitutes a growth of over 90%.

Read more on: http://www.arabianbusiness.com/turkish-airlines-considering-multibillion...

Turkish Al Baraka Turk Participation Bank has signed an Islamic finance deal of $450 million. Several major international banks took part in the deal. The facility includes 32 banks from 16 countries around the world, among which Standard Chartered Bank, Noor Islamic Bank, ABC Islamic Bank and Emirates NBD. The mandated lead arrangers were Bank Islam Brunei Berhad Darussalam and Al Hilal Bank.

Turkey is well on its way to become the next hub for Islamic banking and finance. It only needs its government to show its commitment to Islamic finance so that other participants in the industry join Turkey in building a vibrant Islamic banking and finance industry. The recent successful $1.5 billion sovereign Sukuk issue denominated in dollar as well as the lira-denominated $900 million sovereign Sukuk have lead the county's way to the global platform of Islamic banking and finance. Since Pakistan has the most Shariah authentic model of Islamic banking, a Turkey-Pakistan alliance will contribute to the promotion of Islamic banking in Turkey, and, furthermore, it is expected to bring a new juristic approach to product development and structuring.

Read more on: http://tribune.com.pk/story/451643/rising-partner-a-turkey-pakistan-alli...