International legal practice Norton Rose has advised Türkiye Finans on their debut Sukuk issuance of US$500 million Certificates due 2018. The Sukuk, which was issued with the prior approval of the Capital Markets Board of Turkey, represented the first non-Ijarah Sukuk issued out of the country.
The Joint Lead Managers were Citigroup Global Markets Limited, HSBC Bank plc, NCB Capital Company and Noor Islamic Bank P.J.S.C. and the Co-Managers were QInvest L.L.C. and Sharjah Islamic Bank P.J.S.C (together, the “Managers”).
Mohammed Paracha, Partner, commented “This is yet another ground-breaking deal for Turkey. Türkiye Finans’ debut issuance is a testament to the strength and depth of the capital markets in this market. We anticipate that, as Islamic finance grows and develops further in the Turkish market, we will see greater innovation in terms of the structures used and a wider variety of issuers of Sukuk coming out of that market”.
Alex Roussos, Of counsel, commented “We are proud to have advised Türkiye Finans on its very successful inaugural Sukuk issuance. This was a complex transaction as we had to fully explore the capital markets and tax regimes in Turkey and its implications for our client. The Sukuk involved a hybrid structure using a pool of lease assets combined with a series of Murabaha trades. This transaction paves the way for hybrid, innovative structures in the Turkish marketplace, which is further evidence of the growing sophistication of that jurisdiction and the very vibrant and dynamic nature of market participants there.”
The Norton Rose Dubai team was led by partner Mohammed Paracha, capital markets Of Counsel Alex Roussos and senior associate Ahmet Kalafat assisted by associates Faris Al Amoudi and Katie Phillips. Somay Hukuk Bürosu advised Türkiye Finans on the Turkish law aspects of the deal.
Clifford Chance LLP advised the Managers and to Citibank N.A., London Branch as the Representative on English law matters with Yegin Avukatlık Bürosu advising the Managers on Turkish law.
