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Türkiye Wealth Fund Sukuk Issuance Draws Record Demand!

18 October 2024
The Türkiye Wealth Fund is pleased to announce the successful completion of its USD 750 million Sukuk issuance, which garnered unprecedented demand from international investors. The issuance, with a maturity of 5 years and 3 months and a return rate of 6.95%, marks a significant milestone as TWF's first foray into the global Sukuk market. Notably, TWF has become the first Turkish institution outside of the Treasury and Turkish participation banks to issue Sukuk globally.

Following investor roadshows held in London between October 14-16, 2024, TWF received strong interest during the demand-gathering process. The issuance, aimed at diversifying funding for the Istanbul Financial Center project, attracted nearly USD 7 billion in demand—an oversubscription of 14 times the initial offering. This remarkable level of interest set a record in the history of Sukuk issuances.

The transaction follows TWF’s highly successful Eurobond issuance earlier this year, which also saw 14-fold oversubscription. This consistent investor enthusiasm underscores the high level of confidence in both Türkiye's economy and the TWF’s strategic initiatives.

Amid a period of mixed global risk perceptions, the success of this Sukuk issuance highlights the strength of investor confidence in Türkiye's economic policies. It represents the second-largest price (IPT) reduction of 2024 among all bond and Sukuk issuances from Türkiye-based institutions, second only to the TWF’s own Eurobond transaction in February. The final pricing of the Sukuk at 6.95% secured a 17.5 basis point advantage compared to the equivalent pricing of the TWF Eurobond.

In September, TWF had the opportunity to engage with key investors from the Middle East and Gulf regions during its investor roadshow in Dubai and Abu Dhabi. The meetings provided an excellent platform to highlight TWF’s strategic objectives, and the response from the investor community was overwhelmingly positive.

The proceeds from the Sukuk issuance will be directed towards strategic investments within the Istanbul Financial Center, in alignment with TWF’s mission to foster growth and enhance depth in Türkiye’s financial markets. The Istanbul Financial Center is poised to become a major regional—and eventually global—financial hub, attracting top-tier financial institutions and companies. This multifaceted ecosystem of financial services, international trade, and energy will create significant value, driving further growth.

The Sukuk issuance was coordinated by Emirates NBD Capital, JPMorgan, and Standard Chartered, who played a pivotal role in the success of this landmark transaction.

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