IslamicFinance.de

Speculation that the Turkish government may be closer to relinquishing control of Bank Asya has stoked its stock to a record gain. Bondholders proved harder to please. Shares of the Istanbul-based lender soared more than 50% after it said most Class-A holders provided documentation to the regulator proving they’re qualified to be founding partners. The bank’s Islamic bond climbed about 3% to 61.474 cents on the dollar in the week of April 12. Government control is considered positive for bondholders. The bank’s Islamic bond due March 2023 jumped 38%, the most on record, when Turkey’s agency responsible for resolving failed banks seized control in February as investors bet authorities wouldn’t let the lender default.