May 30, 2016 / 3:42 AM / 3 years ago

Kuveyt Turk raises 300 mln lira via public sukuk sale

May 30 (Reuters) - Turkish participation bank Kuveyt Turk said it has raised 300 million lira ($101.5 million) of Islamic bonds, and plans to regularly use public sales to tap the sukuk market.

The 6-month deal marks the largest local currency sukuk issued by Kuveyt Turk, 62 percent owned by Kuwait Finance House , after a debut sale in 2010.

The Islamic lender said on Sunday it had opted for a public sale to further widen its funding sources, in contrast to most other sukuk deals which are sold via private placements.

The bulk of sukuk issuance in Turkey has come from the government and the country’s Islamic banks, known as participation banks, although corporate issuance is growing.

Last week, the Turkish treasury mandated banks for a sovereign sukuk deal in the international markets.

Earlier this month, Islamic lender Turkiye Finans Katilim Bankasi applied to raise as much as 17 million euros via sukuk, according to Turkey’s Capital Markets Board, in what would be a rare sharia-compliant deal in that currency.

Aktif Bank has also applied to raise up to 100 million lira via sukuk. ($1 = 2.9550 liras) (Reporting by Bernardo Vizcaino; Editing by Kim Coghill)

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