Vakıf Katılım issues $500 million in additional sukuk

ISTANBUL

Vakıf Katılım has successfully completed the issuance of a $500 million Additional Tier 1 (AT1) capital-eligible Sukuk, marking a significant milestone as the largest transaction of its kind ever executed by a participation bank in Türkiye.

This landmark issuance attracted strong interest from a broad base of over 80 international investors, spanning the GCC, the U.K., continental Europe and Asia. Total demand reached an impressive $1.8 billion — more than three and a half times the issued amount — underscoring global investor confidence in both the institution and the Turkish financial system.

Notably, the transaction stands out not only as the largest publicly issued AT1 Sukuk in Türkiye, but also as the most competitively priced to date within its category, the bank said in a statement.

“The overwhelming demand for our Sukuk is a clear demonstration of the trust placed in our institution by international investors, as well as in the long-term strength and resilience of the Turkish economy,” commented Mehmet Ali Akben, the CEO of Vakıf Katılım.

HSBC, Emirates NBD and Standard Chartered Bank acted as Joint Global Coordinators on the transaction. They were joined by Abu Dhabi Islamic Bank, Arqaam Capital, Bank ABC, BBVA, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, KFH Capital, Mashreq and Warba Bank as Joint Bookrunners.