First Turkish-only private sector international sukuk in banking
BNY Mellon, the global leader in investment management and investment services, has been appointed delegate, principal paying agent, registrar, transfer agent and Irish listing agent on a sukuk deal issued by Asya Sukuk Company Limited.
This is the first Turkish bank sukuk internationally placed where the obligor is a company which is entirely Turkish owned.
The sukuk certificates issued are unconditionally and irrevocably guaranteed by Bank Asya, the largest participation bank in Turkey. The inaugural issuance is for $250,000,000 and will have an initial yield of 7.5% per annum.
As delegate and principal paying agent, BNY Mellon will perform fiduciary duties and make profit and principal payments to investors on behalf of Asya Sukuk Company Limited. It will also handle administrative duties related to the issuance of the certificates.
"This is a ground-breaking transaction because it is the first ever international Tier 2 sukuk issue," said Giambattista Atzeni, senior relationship manager for the Middle East, North Africa and Turkey, Corporate Trust at BNY Mellon. "Sukuk deals offer Turkish participation banks an efficient means of raising capital internationally. We are seeing the evolution of more and more Islamic compliant products in Turkey, which is fast emerging as an active venue for Islamic financing."
Tarek Elrefai, CEO of Global Client Management for the Middle East and Africa at BNY Mellon, said: "Turkey is a key growth market for us and we've seen a rise in the number of deals we are closing there in the past two years. This transaction is a sign of the ongoing deeper collaboration between Turkey and global markets. We hope that this deal will provide a template for other participation banks in the region."
The sukuk will be issued in fixed rate resettable Tier 2 certificates which are due in 2023.