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.
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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.
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By GlobalDataAs of March 31, 2013, BNY Mellon Corporate Trust serviced $12 trillion in outstanding debt from 61 locations in 20 countries. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and to develop customized and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.
Corporate trust providers are appointed by corporations, municipal governments and other entities issuing debt to perform a variety of duties, including servicing and maintaining the debt issue, processing principal and interest payments for investors, representing investors in defaults, and providing value-added services for complex debt structures.
