Albaraka Sukuk Assigned ‘B’ Preliminary Rating by S&P

Standard & Poor’s Ratings Services has assigned its preliminary ‘B’ issue rating to the proposed $350 million Tier 2 sukuk trust certificates to be issued by Albaraka Sukuk Ltd. Albaraka Sukuk (the issuer) is a special-purpose vehicle incorporated in the Cayman Islands.

It will enter into sale and purchase agreements and a Murabaha agreement with Albaraka Turk Katilim Bankasi (ABT; BB/Negative/B), a participation bank incorporated in Turkey. The sale and purchase agreements (51% of the issuance amount) are for a diversified portfolio of Sharia-compliant assets. The Murabaha agreement (49% of the issuance amount) is for a portfolio of commodities.