Akin Advises Ziraat Katılım Bankası A.Ş. on Landmark Inaugural International Sukuk Issuance
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(Dubai) – Akin advised Ziraat Katılım Bankası A.Ş. (Ziraat Katilim), a full-service, state-owned participation bank that has been operating in Türkiye since May 2015, as obligor in connection with the issuance of $500,000,000 lease certificates due November 2026 issued by Ziraat Katilim’s wholly owned subsidiary Ziraat Katılım Varlık Kiralama A.Ş. (the Certificates).
The 3-year Reg S-only Certificates were issued at a 9.375% profit rate on November 6, 2023 and rated B- by Fitch. The Certificates were issued under a Sukuk Al-Wakala / Murabaha structure and were admitted to listing on the regulated market of Euronext Dublin. This landmark transaction serves as the first international issuance from a state-owned participation bank.
The issuance received significant investor demand with a broad geographical reach (across the U.K., Middle East, Europe, U.S., and Asia Pacific region), with the final order book over five times oversubscribed and made up of 135 individual orders; this represents one of the largest oversubscriptions for a Turkish transaction this year. Dubai Islamic Bank, Emirates NBD Capital, HSBC and Standard Chartered Bank served as the joint bookrunners on this landmark transaction.
“Despite volatile global rates and a difficult geopolitical backdrop, the approximately $2.5 billion final order book and strong demand from both traditional investors and Shari’a investors across a broad range of geographies are a testament to Ziraat Katilim’s strength and an excellent step in the development of the Sukuk market in Türkiye. We are grateful for the support of all our stakeholders and the invaluable assistance of the various advisors,” said Metin Özdemir, CEO of Ziraat Katılım.
Commenting on this strong debut issuance by Ziraat Katilim, Akin capital markets partner Rizwan Kanji stated, “We are pleased to have worked with the Ziraat Katilim team on this inaugural landmark transaction and achieving a successful transaction in terms of pricing, size, and investor diversification. We are delighted with the trust placed with the Akin team by the Ziraat Katilim team.”
In addition to Rizwan, the Akin debt capital markets team advising Ziraat Katilim included associates Nicola Minervini and Sahar Abas.
Akin is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.
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