March 27 Turkey's state grain board TMO and
construction firm Gap Insaat have received regulatory approval
for debut sales of Islamic bonds, or sukuk, as the funding
format gains favour to tap local and Gulf investors.
Turkey has seen steady issuance of sukuk from the government
and the country's Islamic banks, known domestically as
participation banks, but an increase in corporate issuance could
help tap into a much wider stable of issuers.
The TMO will raise 150 million lira ($41.6 million) via a
sukuk that will be arranged by Islamic lender Kuveyt Turk,
majority-owned by Kuwait Finance House, according to
the country's Capital Markets Board.
The TMO is a quasi-autonomous state enterprise responsible
for regulating grain markets in Turkey, including wheat, barley,
corn and rice.
Gap Insaat, the contruction arm of conglomerate Calik
Holdings, will sell a rare dollar-denominated deal worth $118.4
million to be arranged by Aktif Bank. The firm has operations in
Qatar, Saudi Arabia, Iraq and Turkmenistan.
Turkey is seeking to build a bigger role in the industry and
forge closer ties with fast-growing economies in the Gulf and
southeast Asia, the traditional centres of Islamic finance.
Last week, the Turkish Treasury hired banks to arrange a
sale of sukuk in the international markets, with meetings set to
begin this week in the United Arab Emirates.
The sovereign last issued dollar-denominated sukuk in June
of last year, with a $1 billion five-year deal.
($1 = 3.6023 liras)
(Reporting by Bernardo Vizcaino:; Editing by Kim Coghill)