IslamicFinance.de

Turkish participation bank Kuveyt Turk has received regulatory approval to raise 2 billion lira ($555.8 million) via sukuk, as it expands its domestic footprint while winding-down its Dubai unit. Kuveyt Turk, 62% owned by Kuwait Finance House , would sell the lira-denominated sukuk to qualified investors through its asset-leasing company, KT Kira Sertifikalari Varlik Kiralama, according to a regulatory filing. No timeframe or tenor were given for a potential deal. New funding could help the bank's plans to expand its branch network to 400 offices this year from a current 385. The bank increased its net profit by 22% and total assets by 15% in 2016. In December, however, the bank said it would terminate all activities of its wholly-owned subsidiary in Dubai, as it had not established a commercial advantage. It will continue to service the Gulf region via its branch in Bahrain, while concentrating on its operations in Turkey and Germany.