Turkey develops sukuk while Malaysia reboots its programme.
Turkey set up shop in the global sukuk market in August when Kuveyt TE-rk Participation Bank, one of four Islamic banks in Turkey, issued the country's first ever "participation certificate". The three-year, $100m wakala sukuk transaction was co-managed by Kuwait's Liquidity Management House and Citigroup, and law firm Norton Rose structured the transaction.
Turkey's four participation banks-the other three are AlBaraka TE-rk, Bank Asya and TE-rkiye Finans-hold only 4% of the banking sector's total assets and 5% of all deposits, according to TKBB, the participation banks' association of Turkey. Albaraka TE-rk was the first to open in 1985; Bank Asya is the largest.
Turkey has signalled its intentions to assume a more prominent role within the global Islamic banking and finance sector as it seeks to lure capital from the Gulf. Kuveyt TE-rk, 62% owned by Kuwait Finance House, has indicated that there is a strong appetite for Turkish assets not only in the Gulf but also in Europe. Turkey, populated nearly exclusively by Muslims, is still knocking on the EU's door, and remains under assessment as a candidate in the next enlargement wave.
Copyright Islamic Banking & Finance. All rights reserved.
Provided by Syndigate.info an Albawaba.com company
|Printer friendly Cite/link Email Feedback|
|Publication:||Islamic Banking & Finance|
|Date:||Feb 20, 2011|
|Previous Article:||Contrasting fortunes in UK as sector regroups for 2011.|
|Next Article:||Shariah-compliant or Shariah-based? Yes, that old chestnut...|