Bahraini lender Al Baraka Bank’s Turkish unit is working on the issue of a USD 200 million, 10-year subordinated sukuk, according to Al Baraka Türk general manager Fahrettin Yahsi.
Yahsi said the sukuk would be issued when market conditions allowed and added that the bank would renew its USD 450 million murabaha syndication with a higher volume at the end of September.
Al Baraka Türk Participation Bank was established in 1985 and started operations in the same year.
Al Baraka Türk currently renders its services through its 121 branches throughout Turkey and 1 branch in Iraq, 51 of which are in Istanbul and 71 in the leading industrial and commercial cities.
There are three types of banks in the Turkish banking sector, namely commercial banks, development and investment banks, and participation banks (also known as non-interest banks). There are currently four participation banks in Turkey, which are Albaraka Türk, Kuveyt Türk, Türkiye Finans, and Bank Asya.
As such, participation banking assets accounted for 5.2% of all banking assets in Turkey as at end-March 2013, up from 5.1% at the end-2012.
Participation banks’ total assets are expected to reach 10.0% of the Turkish banking system’s total by 2018.