Feb 27 Turkish participation bank Kuveyt Turk
has received regulatory approval to raise 2 billion
lira ($555.8 million) via Islamic bonds, or sukuk, as it expands
its domestic footprint while winding-down its Dubai unit.
The sukuk would add to the bank's previous taps of Turkey's
domestic market, after it raised a combined 650 million lira via
public and subordinated sukuk in 2016. It also raised $500
million via dollar-denominated sukuk in October.
Kuveyt Turk, 62 percent owned by Kuwait Finance House
, would sell the lira-denominated sukuk to qualified
investors through its asset-leasing company, KT Kira
Sertifikalari Varlik Kiralama, according to a regulatory filing.
No timeframe or tenor were given for a potential deal from
the latest sukuk programme.
New funding could help the bank's plans to expand its branch
network to 400 offices this year from a current 385, after it
increased its net profit by 22 percent and total assets by 15
percent in 2016.
In December, however, the bank said it would terminate all
activities of its wholly-owned subsidiary in Dubai, which it
setup in 2009, as it had not established a commercial advantage.
It will continue to service the Gulf region via its branch
in Bahrain, while concentrating on its operations in Turkey and
Germany, where it opened in 2015.
($1 = 3.5986 liras)
(Reporting by Bernardo Vizcaino; Editing by Simon