Ziraat Bank

Warba Bank ‘signs’ financial deal with #Turkey’s Ziraat Bank – Islamic banking sector growth eyed

#Kuwait’s Warba Bank announced a new Shari’ah-compliant, joint, multi-currency financial deal of $236 million with the Ziraat Participation Bank of Turkey. Warba Bank acted as the Lead Arranger and Subscription Manager of the deal, which was initially launched at $160 million. Due to oversubscription, the deal was increased so as to reach $ 236 million, with an increase of 52%. The Murabaha-based financing deal includes both US Dollars and Euros. It will be employed mainly in SME financing and income diversification at Ziraat Bank. Shaheen Hamad Al-Ghanem, Warba Bank’s CEO said the Bank was proud to be entrusted and to contribute to the financing of the agricultural sector, which is one of the pillars of the rise of the Turkish economy. This is the second participation of Warba Bank in arranging a financing transaction for the Ziraat Participation Bank of Turkey. In 2016, it contributed to a $155 million multi-currency co-financing transaction for the Turkish bank.

Ziraat Islamic bank follows parent bank to loans

The Islamic subsidiary of Turkey's Ziraat Bank has launched a bitesize $75m murabaha deal, as the bank itself refinances $1bn of loans. Ziraat Participation (Ziraat Katilim Bankasi), which is wholly owned by Ziraat Bank, launched a $75m dual currency loan earlier this week — its first ever syndicated deal, according to a lead banker. Banks can make commitments in euros and dollars. ABC Islamic Bank is co-ordinator.

Turkey’s Ziraat Islamic unit applies for 1.5 bln lira sukuk

The Islamic lending arm of Turkey’s state-run Ziraat Bank has applied to sell 1.5 billion lira ($501.9 million) worth of Islamic bonds, according to Turkey’s Capital Markets Board (SPK). The sale would be the first by a state-run Islamic bank, and follows a wider government push to develop the sector in the world’s eighth most populous Muslim nation. No tenor or details of underlying assets were given for the deal, which will be sold to qualified investors. Islamic lender Kuveyt Türk also applied for 1.85 billion lira worth of sukuk. Ziraat Participation Bank started operations in May 2015, with 675 million lira in paid-up capital and plans to have 170 branches and 2,200 staff by the end of 2018.

Turkish President Tayyip Erdogan expects state banks to launch Islamic units soon

Turkish President Tayyip Erdogan said he expected other state banks to establish Islamic banking units soon after state-run Ziraat launched an Islamic unit on Friday. Erdogan, speaking at the launch ceremony of Ziraat's new business, said he also expected Ziraat to set up an Islamic insurance unit.

Turkey's VakifBank eyes $300m loan for new Islamic bank

The board of directors of Turkey’s VakifBank’s has authorized a major loan procurement to set up an Islamic banking operation and confirmed that the bank’s general directorate office now has the authority to push ahead with the $300 million financing. The Turkish government wants to see the establishment of three Islamic banks as subsidiaries of the current state-run conventional banks by the end of 2015.

Islamic banking gains ground in Turkey

Turkey’s government has moved to expand Islamic banking by inviting public banks into the sector. Earlier this month, the largest state-run bank, Ziraat, received approval to establish an Islamic unit with $300 million in capital. Ziraat has nine months to establish the new bank. But a key question remains unanswered: Where will the capital come from? If Ziraat’s interest-based earnings are considered illicit, how is it going to establish the capital of an interest-free bank? To resolve the conundrum, the Treasury is reportedly planning to provide the required capital although it also operates on the basis of interest. Meanwhile, the government has already submitted a bill to parliament to clear legal hurdles in Vakifbank and Halkbank’s path to Islamic banking.

Turkey's Ziraat bank receives fast-track approval for Islamic unit

The Ziraat Bank has received regulatory approval from the banking watchdog (BDDK) to establish what would be the fifth Islamic lender in the country, a key part of the government's efforts to expand the sector. Ziraat will be allowed to set up a standalone Islamic unit with $300 million in capital, according to the regulator.

UPDATE 1-Turkey's Bank Asya, Qatar's QIB end exclusive talks over Asya stake sale-sources

Qatar Islamic Bank (QIB) and Turkey's Bank Asya have ended exclusive talks over QIB acquiring a stake in the Turkish lender, with valuation concerns said to be behind the decision. Turkish state bank Ziraat Bank may now be the most likely partner for Bank Asya but the two banks have not officially begun talks. It is not clear what size stake has been under discussion. Bank Asya shares slumped 9.9 percent to 1.36 lira, their lowest since April 1, by 1304 GMT, on the news that Asya was no longer holding exclusive talks with QIB. Islamic lender Bank Asya has been under pressure to sell assets, after major investors sympathetic to Turkish Prime Minister Tayyip Erdogan withdrew deposits.

Ziraat Bank eyes on Islamic Bank

State-owned Ziraat Bank has interest in buying the Islamic bank Bank Asya. Yet nothing is official just now, according to Ziraat Bank, a state owned bank. The move would allow Ziraat to enter the Islamic banking market. The Turkish government would also like to change the banks’ capital structure that is controlled by Gülen supporters. Bank Asya has been the subject of focus since the Turkish media reported that state-owned companies and institutional depositors loyal to Prime Minister Recep Tayyip Erdo?an had withdrawn around 4 billion Turkish Liras in the wake of the Dec. 17, 2013, graft probe.

BREAKINGVIEWS-Turkey can profit from Islamic banking

As part of an initiative backed by the Islamist government, state-run Ziraat Bank is working to set up a Shari’ah-compliant entity. Turkey already has four Islamic banks, known locally as participation banks, of which three are foreign-owned. But Shari’ah-compliant assets account for just 5 percent of total banking assets, far below the average of 25 per cent in the Gulf región. Size is mostly the problem. Islamic banks in Turkey are also lagging in innovation compared to peers elsewhere in the Muslim world. Stronger and larger Islamic banks could strengthen Turkey's financial position. Domestically, they could lure funds that could help fund Turkey's GDP growth. Internationally, stronger Islamic banks would enable Turkey to attract more cash from the Gulf and Asia.

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