Turkish participation bank Kuveyt Turk has received regulatory approval to raise 2bn lira ($555.8mn) via Islamic bonds, or sukuk, as it expands its domestic footprint while winding-down its Dubai unit, Reuters reported.
The sukuk would add to the bank’s previous taps of Turkey’s domestic market, after it raised a combined 650mn lira via public and subordinated sukuk in 2016.
It also raised $500mn via dollar-denominated sukuk in October.
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 from the latest sukuk programme.
New funding could help the bank’s plans to expand its branch network to 400 offices this year from a current 385, after it 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, which it setup in 2009, 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, where it opened in 2015.