The Reg S fixed rate resettable tier 2 sukuk is due 2025 and is backed by the credit of Albaraka Turk as obligor, was issued by Albaraka Sukuk Ltd.
The sukuk will pay a profit rate of 891bps over the five year US dollar mid swap rate and represents Albaraka Turk’s third international sukuk issuance following the issuance of their tier 2 sukuk in 2013, and their senior sukuk in 2014.
Global law firm Norton Rose Fulbright advised on the deal in which Standard Chartered Bank acted as the sole coordinator. Joint Lead Managers and Joint Bookrunners were Barwa Bank, Dubai Islamic Bank, Emirates NBD Capital, Nomura International plc., Noor Bank, QInvest and Standard Chartered Bank.
Gregory Man, partner in the Dubai office for Norton Rose Fulbright , commented: “We were pleased to be able to assist Albaraka Turk in executing this transaction in order to add to their capital base. This is only the second Basel III compliant tier 2 deal to come out of Turkey, and the first in sukuk format. The transaction represents another landmark deal in the Turkish market and builds on our firm’s growing reputation in Turkey.”
Clifford Chance LLP also advised Deutsche Trustee Company Limited as Delegate. Maples and Calder provided Cayman law advice.