Turkey

Warba Bank ‘signs’ financial deal with #Turkey’s Ziraat Bank – Islamic banking sector growth eyed

#Kuwait’s Warba Bank announced a new Shari’ah-compliant, joint, multi-currency financial deal of $236 million with the Ziraat Participation Bank of Turkey. Warba Bank acted as the Lead Arranger and Subscription Manager of the deal, which was initially launched at $160 million. Due to oversubscription, the deal was increased so as to reach $ 236 million, with an increase of 52%. The Murabaha-based financing deal includes both US Dollars and Euros. It will be employed mainly in SME financing and income diversification at Ziraat Bank. Shaheen Hamad Al-Ghanem, Warba Bank’s CEO said the Bank was proud to be entrusted and to contribute to the financing of the agricultural sector, which is one of the pillars of the rise of the Turkish economy. This is the second participation of Warba Bank in arranging a financing transaction for the Ziraat Participation Bank of Turkey. In 2016, it contributed to a $155 million multi-currency co-financing transaction for the Turkish bank.

Warrants issued for 78 Bank Asya senior executives: 47 detained

The Istanbul Chief Public Prosecutor’s Office issued detention warrants for 78 senior executives of Bank Asya, which was confiscated by the Turkish government. Bank Asya was associated with the failed coup attempt on July 15, 2016 due to its links to the Gülen movement. Forty-seven of the 78 bank executives have been detained so far on suspicion of membership in an armed terrorist organization and financing a terrorist organization.
Immediately after the putsch, the Justice and Development Party (AKP) government along with President Recep Tayyip Erdogan pinned the blame on the Gülen movement. According to a report by the state-run Anadolu news agency, 154,694 individuals have been detained and 50,136 have been jailed due to alleged Gülen links.

#Turkish Banking Team Plans #Iran Visit to Resolve Halkbank Dispute

A delegation from the Central Bank of Turkey will soon meet their Iranian counterparts in Tehran to remove hurdles in the way of bilateral banking relations. Particular difficulties include Iranian citizens' bank accounts in the Turkish Halkbank. The banking ties were overshadowed by the detention of a senior Halkbank official in the US in March for allegedly violating Iran sanctions. Mehmet Hakan Atilla was accused of conspiring with Reza Zarrab, an Iranian-Turkish gold trader, to channel hundreds of millions of dollars through the US financial system on behalf of Iranian companies. Turkish Minister of Economy Nihat Zeybekci is also scheduled to visit Iran on June 21 to negotiate a preferential trade agreement between the two sides.

#CALL FOR #PAPER: TURKISH JOURNAL OF #ISLAMIC #ECONOMICS (TUJISE)

The Research Center for Islamic Economics (IKAM) continues to contribute in Islamic economics. Turkish Journal of Islamic Economics (TUJISE) started to be published by IKAM by 2016. It is is a peer-reviewed biannually published international journal aiming to promote new researches and perspectives in the field.
The mission of TUJISE is to present a forum in which scholars from around the globe discuss the possibility of development of new and alternative perspectives in the Islamic economics. We wish to have three kinds of contributions from researchers. We prioritize to publish distinguished and original empirical and theoretical research papers. We also publish book reviews that address current original studies. In review article and commentary section essays addressing any topic from different approaches with special references to the related literature will take part.

We call all researchers to contribute TUJISE. All the papers are evaluated in a double-blind review process and published promptly.

Questions about submissions may be directed to editor-in-chief, at info@ikam.org.tr

For further information please visit the website at www.tujise.org

Hogan Lovells advises on the first #Sukuk to be listed on ISE's Global Exchange market

Hogan Lovells has advised Aktif Bank on the first Sukuk ever to be listed on the Global Exchange Market of the Irish Stock Exchange (ISE). The $118million Sukuk was issued under a mudarabah structure with GAP Insaat Yatirim ve D?s Ticaret, a Turkish construction company. While the Irish Stock Exchange has listed Sukuk historically, this is the first Sukuk to be listed on the ISE's Global Exchange Market. The Hogan Lovells team was led by Imran Mufti (Partner, Dubai), with support from Annalisa Feliciani (Counsel, Rome), Ahmet Kalafat (Senior Associate, Dubai) and trainees Marjun Parcasio and Luigi de Angelis. Onur Aksoy from Aktif Bank said this Sukuk represents a milestone for Islamic capital markets originating out of Turkey. He added that Aktif Bank was pleased to work with the Hogan Lovells team, benefitting from their deep understanding of Islamic finance and capital markets.

#Turkish wealth #fund head says signed Islamic mortgage deal with IDB

Turkey's new sovereign wealth fund has signed a framework agreement with the Islamic Development Bank (IDB) to develop Islamic mortgages. Turkey's government has already transferred stakes worth billions of dollars in Turkish Airlines, major banks and other companies to the wealth fund to finance big-ticket infrastructure projects. Fund chairman Mehmet Bostan said the fund had authority to support mega projects but its priority is to invest in leading global industries in areas like technology, telecoms and energy. Bostan said financial technology was one of the fund's areas of operation, adding it was working on a joint payment platform and mobile banking. He added that the Turkish fund has received invites from other national funds and was negotiating with two of them after signing an agreement with the Russian Direct Investment Fund (RDIF).

Islamic Development Bank plans to buy stake in Borsa Istanbul

The Islamic Development Bank (IDB) plans to take at least a 10% stake in Turkey's state-run stock exchange, Borsa Instanbul. Abdulhakim Elwaer, IDB's director of cooperation, said negotiations are expected to finalize in two to three months as part of wider efforts to develop Islamic finance in Turkey. Elwaer emphasized the bank's wish to help develop Turkey as a global Islamic financial center. IDB and Borsa Istanbul signed a cooperation agreement in November, with discussions currently ongoing to decide on a specific size and time frame. The bourse has a share capital of 423 million lira ($115.6 million), implying a value of 42.3 million lira for a 10% stake. Elwaer added that a gold trading platform is also in discussion, although the equity stake remains the bank's biggest priority.

Albaraka Turk secures $213 million Islamic #loan

Turkish lender Albaraka Turk has secured a $213 million murabaha-based loan syndication, up from the $150 million it initially sought. The bank said the profit margin for the 370-day sharia-compliant facility was 125 basis points over three-month LIBOR. The lender had appointed ABC Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital Ltd, Qatar Islamic Bank and Standard Chartered Bank to arrange the transaction. The bank is a unit of the Al Baraka Banking Group, which is also planing to issue dollar-denominated sukuk.

75 academics face 15 years in jail each for depositing money into Bank Asya

77 academics from the Abant Izzet Baysal University (AIBU) face between 7.5 years and 15 years in jail on accusation of membership to a terrorist organization. 75 academics are sentenced to 15 years in prison, while the remaining two to 22 years. The prosecutor listed among evidence for terror charge the academics’ previous transactions within Bank Asya. The Turkish government closed down the Islamic lender as part of its crackdown against the Gulen movement. The government also pinned the blame for July 15 on the movement. The accused academics have withdrawn TL 2 million from other banks to deposit into Bank Asya since late 2013 when the bank was struggling. The prosecutor underscored that some academics transferred money from spouses’ accounts to another account in Bank Asya so that they could benefit from state insurance in case the bank faces closure.

#Turkey's grain board TMO, Gap Insaat to sell debut Islamic #bonds

Turkey's state grain board TMO and construction firm Gap Insaat have received regulatory approval for debut sukuk sales. Turkey has seen steady issuance of sukuk from the government and the country's Islamic banks, but an increase in corporate issuance could help tap into a much wider stable of issuers. According to the country's Capital Markets Board, the TMO will raise 150 million lira ($41.6 million) via a sukuk that will be arranged by Islamic lender Kuveyt Turk. Turkey is seeking to build a bigger role in the industry and forge closer ties with fast-growing economies in the Gulf and southeast Asia. The Turkish Treasury hired banks to arrange a sale of sukuk in the international markets, with meetings set to begin this week in the United Arab Emirates.

#Turkish treasury says mandates three banks for #sukuk issue

Turkish treasury mandated the Dubai Islamic Bank, HSBC, and Standard Chartered to explore opportunities for a possible sukuk issue. A series of investor meetings will be organised in the UAE on March 28, 2017. Meanwhile, the country’s monetary authority raised its highest interest rate while leaving all of the other rates unchanged. The lira rallied as the move was seen paving for they way for tighter policy and serving as insurance against bouts of currency weakness.

#Turkey's SWF to focus on securitization

The first act of business by the Turkish Sovereign Wealth Fund (SWF) will be the issuance of securities, while it will also focus on Islamic finance products in securitization. The fund will contact local and foreign investors for securitization over the next few months. Even though the Treasury announced that the transferred asset size was approximately worth $160 billion with an equity size of $35 billion last Friday, an endeavor is currently underway concerning the valuation and auditing of the transferred assets by the fund. According to a Turkish daily, Dünya, the fund is exploring various types of instrument models, especially in Islamic finance. For this reason, the issuance of sukuk is a major focus of the agenda for the fund.

Kuveyt Turk gets nod for 2 bln lira #sukuk, closes Dubai unit

Turkish participation bank Kuveyt Turk has received regulatory approval to raise 2 billion lira ($555.8 million) via sukuk, as it expands its domestic footprint while winding-down its Dubai unit. Kuveyt Turk, 62% owned by Kuwait Finance House , would sell the lira-denominated sukuk to qualified investors through its asset-leasing company, KT Kira Sertifikalari Varlik Kiralama, according to a regulatory filing. No timeframe or tenor were given for a potential deal. New funding could help the bank's plans to expand its branch network to 400 offices this year from a current 385. The bank increased its net profit by 22% and total assets by 15% in 2016. In December, however, the bank said it would terminate all activities of its wholly-owned subsidiary in Dubai, as it had not established a commercial advantage. It will continue to service the Gulf region via its branch in Bahrain, while concentrating on its operations in Turkey and Germany.

Halic Leasing widens #Turkey's #Islamic #finance market

Halic Leasing is expanding its sharia-compliant business portfolio to tap demand from small businesses. This is a sign that Turkey's Islamic finance market is growing beyond traditional banking services. According to Halic's General Manager Gokcen Sahin, the company is building a portfolio of leased assets and is targeting new business of around $25 million by the end of the year. Halic also aims to attract further investments from Islamic mutual funds while expanding into construction equipment later this year. The plans come after the firm's new shareholders injected fresh capital at the end of last year and set up a sharia committee to ensure its products conform to Islamic principles. Gokcen Sahid added that with a good quality portfolio, Halic may also consider raising funds via sukuk in the future.

5,000 academics alleged of depositing cash in Bank Asya on Gülen’s demand

A Turkish court indictment ruled that some 5,000 academics have deposited cash in Bank Asya after an order from U.S.-based Islamic preacher Fethullah Gülen. After the July 2016 coup attempt Bank Asya was seized by the state over its links to the Fethullahist Terrorist Organization (FETÖ). The prosecutor of the case decided 15 years in prison for a total of 83 academics, of whom 21 are currently arrested. Some 33 of the suspects were alleged users of ByLock, an encrypted smartphone app that came to prominence after it revealed Gülenists used it to plan the coup. According to the indictment, the Gülen movement sent messages to senior members of the group on social media, ordering them to deposit cash in Bank Asya.

#Turkey's Aktif Bank gets nod to raise $120 mln via #sukuk

Turkey's privately-owned Aktif Bank has received regulatory approval to sell up to $120 million via sukuk. Turkey has seen steady issuance of sukuk from the government and the country's Islamic banks, but corporate issuance remains rare. Aktif Bank will sell the sukuk through its asset leasing company, Aktif Bank Sukuk Varlk Kiralama. Companies can sell sukuk directly by setting up their own asset leasing companies, but the process can be onerous for smaller firms. The government has previously granted tax exemptions for lease-based sukuk, but in August it extended those incentives to all other types of sukuk contracts.

#Bahraini #bank eyes further #investment in #Turkey

Bahrain-based Venture Capital Bank seeks investment in the health, education and food sectors in Turkey, according to the bank's chief executive officer. "We trust the growth potential of the Turkish economy. We want to make new investments in health, education and food sectors in Turkey in 2017," Mohammed Janahi explained this week. Further he said Turkey had always been on the agenda of the bank since the day it was established. Janahi also explained the bank's first move was to buy the majority of the shares of a Turkish company in 2012 that produces concentrated fruit, which he said amounted to around $300 million.
"The company's profits have tripled since that day. We intend to expand our capacity with additional acquisitions," he said. According to Janahi, they focused on the food, education and health sectors as they are least affected sectors by everyday events in the country. "From the beginning, we need to explain that our main goal is to establish a strategic partnership and enlarge the business," he added.

Bank Asya payments being made through Vakif Participation Bank

In #Turkey the insured participation funds at the Bank Asya are being paid to the rights holders through the state-owned Vakif Participation Bank. On May 29, 2015, the Banking Supervisory and Regulatory Authority (BDDK) ruled for a complete takeover by the Savings Deposit Insurance Fund (TMSF) of all Bank Asya shares. According to yesterday's announcement, up to TL 100,000 ($28,247) of the total of insured participation funds at the Asya Participation Bank have been paid to the right holders in Turkish liras. The banks operating permit has been abolished. It was put on sale by the Fund Board, but did not receive any offers despite the extension of the bidding period.

ITFC plans to provide $1B in funds for #Turkish SMEs

The International Islamic Trade Finance Corporation (ITFC) has signed an agreement with Turkey's Small and Medium Industry Development Organization (KOSGEB) to support SMEs. The group plans to provide $1 billion for Turkish companies. The Memorandum of Understanding (MoU) was signed by ITFC CEO Hani Salem Sonbol and KOSGEB President Recep Bicer. The MoU also examines the possibility of providing Islamic Trade Finance solutions to SMEs in Turkey. The suggested cooperation program includes developing joint programs for capacity building activities for SMEs in Turkey and Reverse Linkage Programs for transferring KOSGEB's know-how to other OIC member countries.

US Senator refutes fake press release targeting Kuveyt-Turk bank

An unknown group of people have purposefully leaked new allegations surrounding the Turkey-based bank Kuveyt-Turk. A press release published on Nov. 19 claimed that US Senator Dick Durbin would hold hearings to investigate two key banking institutions in Kuwait and whether they helped fund terrorism. The press release read that Durbin would target Kuwait Finance House and its subsidiary in Turkey, the Kuveyt-Turk participation bank. A spokesman at Senator Durbin's office flatly denied the report and said it was completely false. The fake report has surfaced amidst an ongoing court case in California against the two banks on the terror funding charges. Kuveyt-Turk's lawyers dismissed the charges by saying the allegations have no merit because banks are not responsible for the allegations. President Recep Tayyip Erdogan said the allegations over Kuveyt-Turk and Kuwait Finance House were proof of Western double standards.

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