MANAMA: Bahrain-based Al Baraka Banking Group (ABG) announced that its Turkish subsidiary, Al Baraka Turk Participation Bank, has successfully completed an issuance of Islamic Sukuk worth $350 million in the form of Sukuk Al Wakala-Murabaha, given the large orders received by the Issue, as the value of total subscriptions reached $750 million, more than double the required amount.
The issue of the Sukuk was through the Bank’s leasing subsidiary, Bereket Varlik Kiralama A.S, while the obligor is Al Baraka Turk Participation Bank. The Issue is rated BB by Standard & Poors, and is listed on the Irish Stock Exchange, and carries profit rate of 6.25% per annum for a period of 5 years and is payable on June 30, 2019.
Many banks, financial institutions and investment funds from different main world financial centers participated in the Issue with 61% from Middle East, 31% from Europe and 8% from Asia. The Joint Lead Managers of the Issue were Emirates NBD Capital, Nomura, QInvest and Standard Chartered Bank. In terms of investors’ type, 80% of them were banks and financial institutions, 8% Funds, 6% Hedge Funds and 6% Agencies.
“We are indeed delighted at the large success of the Islamic Sukuk of the Bank, given the prevailed fluctuated financial markets and world economic conditions,” Adnan Ahmed Yousif, Chairman of the Board of Directors of Al Baraka Turk Participation Bank and President and Chief Executive of Al Baraka Banking Group, said.
“This endorses the strength of the position and reputation of Al Baraka Turk Participation Bank in the Turkish market, on the back of its consistent and successful performance over the past many years and the successes and reliability enjoyed by a series of syndicated finances and Sukuk issuances arranged by the Bank during the past years. This success is also a testament to the global reputation and prestige enjoyed by the Al Baraka Banking Group, regionally and globally,” he added.
“The Bank has now glistening position and reputation in the Turkish market and become a major player in this market. Therefore, we constantly strive to strengthen and diversify our financial resources, duly endorsed by our financial performance and our ability to adapt to the current economic situation in the world markets and in order to provide the best services for the Turkish market, which enjoys the diversity and abundance of economic activities and opportunities,” Dr. Fahrettin Yahsi, Member of the Board of Directors and General Manager of Al Baraka Turk Participation Bank, said.
During 2013 the bank was successfully able to expand its investment and financing portfolio, thanks to the strong resources and wide branch network, and yet at the same time focusing on strengthening the liquidity of the bank. As a result, the Bank’s total operating income increased by 35% to TL 855 million (US$ 447 million) during the year 2013 compared with the same period of 2012. The net income was TL 232 million (US$ 121 million) during the year 2013, an increase of 19% compared with the same period of 2012.
As of the end of 2013, the Bank’s assets grew by 40 % to TL 17.2 billion (US$ 8.1 billion) compared with December 2012. Investment and finance portfolio reached TL 13.1 billion (US$ 6.2 billion) as of December 2013 compared to December 2012. The Bank expanded its customer and deposit accounts by 37% to TL 14.5 billion (US$ 6.8 billion) as of end 2013 which financed a total of 84% of the Bank’s total assets, reflecting the strong deposit customer base of the Bank. Shareholders’ equity strengthened by 22% to reach a total of TL 1.5 billion (US$ 710 million) at the end of December 2013.
The Al Baraka Turk Participation Bank has 167 branches spread all over Turkey, employing 3057 staff at the end of 2013 and is significant member of the Al Baraka Banking Group.
Al Baraka Banking Group is a Bahrain Joint Stock Company licensed as an Islamic wholesale bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion and is rated by Standard & Poor’s at BB+ (long term) / B (short term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of Al Baraka is US$ 1.5 billion, while total equity is at about US$ 2 billion.
The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in fifteen countries, which in turn provide their services through over 485 branches. Al Baraka currently has a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and Libya.