148
Table 4.24: A Snapshot of Benchmark Corporate Sukuk Issuances in Turkey
Sukuk issuer KT Kira Sertifikaları
Varlık Kiralama A.Ş.
KT Sukuk Company
Limited
TF Varlik Kiralama A. Ş.
Originator Kuveyt Turk
Participation Bank
Kuveyt Turk
Participation Bank
Türkiye Finans
Participation Bank
Currency format Ringgit US Dollar Ringgit
Structure Wakalah Ijarah Murabahah
Obligor/sukuk
ratings
AA3 (RAM) BBB- (Fitch) AA3 (RAM)
Sukuk assets Shariah-compliant
commodities
Shariah-compliant
commodities
Shariah-compliant
commodities
Purpose To be used for general
corporate and funding
purposes
To boost the company’s
capital
To be used for general
corporate and funding
purposes
Issue date 31 March 2015 17 February 2016 30 June 2014
Tenure 10 years 10 years 20 years
Maturity 31 March 2025 17 February 2026 30 June 2034
Amount RM2 billion USD350 million RM3 billion
Periodic
distribution
5.72% 7.90% 6.0%
Listing n.a Irish Stock Exchange n.a
Geographical
distribution of
investors
Malaysia n.a Malaysia
Sources: RAM, Kuveyt Turk
Analysis of Sukuk Investments – Demand (Buy Side)
High inflation (as described in Box 4.13) and an unstable macroeconomic environment have in
the past limited the growth of domestic institutional investors. According to the IMF Report, as
indicated in Chart 4.50, Turkey’s saving rate is considerably lower than the global average
(IMF, 2016). Although the private sector’s savings rate had averaged 18% of GDP between
1998 and 2003, it has stayed below 13% since 2010. The public savings rate stands at around
3% while the investment rate has increased, from 17% in 2002 to 20% in 2014. Given this,
domestic savings―both public and private―no longer cover investments, thereby opening a
large gap between savings and investments and, in turn, a current-account deficit.