Islamic finance deal of the year – Turkey: Republic of Turkey’s $2.5 billion sukuk

Name of borrower: Republic of Turkey

Amount: $2.5 billion

Tenor: Five years

Underwriters: KFH Capital, Emirates NBD Capital, HSBC, JPMorgan, QNB Capital

Date: June 2023


Demand for Turkey’s recent $2.5 billion five-year sukuk was high – it was more than three times at $7 billion. Middle East investors made up 45% of the book, with 24% from the UK, 18% from the US, 4% from Turkey, and the remainder from European and Asian countries.

The deal was the republic’s first issuance in the international capital markets since its economic policy reversal and May 2023 elections. The spread of 597 basis points over Treasuries reflected a 200bp tightening from Turkey’s previous sukuk issued in April.

KFH Capital, Emirates NBD, HSBC, JPMorgan and QNB Capital acted as joint lead managers on the transaction.

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