Turkish $1.5b sovereign sukuk shows global appetite for sukuks

Emad Yousuf Al Monayea
With the success of Turkish Treasury’s inaugural Sukuk points to global opportunities and appetite for sovereign Sukuk issues, according to Liquidity Management House for Investment, the Sukuk arm of Kuwait Finance House.

Liquidity House said its mandate for Turkish Treasury Islamic bond further strengthened its leadership as a leading provider of Islamic advisory services with a focus on global Sukuk structuring and placement.

Liquidity House said that it had just completed a mandate for the Turkish government. The firm, it added, alongside Citigroup and HSBC, advised on the Turkish Treasury’s recently concluded debut sovereign Sukuk issue, which had an order book almost five times of the issue size, ultimately raising $1.5 billion.

“It is expected that the issue will be a gateway for further Sukuk issuances from Turkey with the sovereign issue having paved the way for a fast growing Sukuk market across the already GCC region and Malaysia, in addition to new territories and markets. Strong appetite for the issue came from investors worldwide, with 58% of the certificates having been sold to investors in the Middle East, 13% in Europe, 12% in Asia, 9% in Turkey and 8% in US,” Liquidity Management House in a statement said.

Liquidity House, which is wholly owned by Kuwait Finance House, has been recently mandated with other debut Sukuk issuances for various Sovereigns which will be coming to the market later part of this year or early next year.

“We are absolutely thrilled to have KFH Group, represented through its Sukuk arm Liquidity House, mandated by an increasing number of sovereign issuers as they look to broaden their investor base and sources of financing. “Having been selected alongside and ahead of some of the world’s largest financial institutions is a huge affirmation of the value proposition offered by KFH Group and Liquidity House and the vast expertise the firm and our teams have in Islamic finance”, Emad Yousuf Al Monayea Vice Chairman, MD and CEO of Liquidity House, said.

“With these mandates, we expect to continue to build our capabilities and our roster of clients including regional and global governments, as evidenced in the awards and accolades reaped during our nascent tenure,” he added.

“Sukuk is one of the fastest growing areas within Islamic finance and the success of the Turkey’s sovereign Sukuk issue goes to underscore the huge demand for Sukuk not just in the MENA region and Asia, or Islamic countries, but also globally. We expect that many more governments and corporates worldwide will take advantage of this demand in coming months and years and KFH Group and Liquidity House are well positioned to support them.”

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