Kuveyt Turk Issues Landmark USD 350 Million Sustainability Tier 2 Sukuk for Renewable Energy Financing

Turkey-based Kuveyt Turk Katilim Bankasi A.S. (Kuveyt Turk), which is majority-owned by Kuwait Finance House, has issued a landmark subordinated Fixed Rate Resettable Sustainability Tier 2 Sukuk facility (Sustainability Sukuk) worth USD 350 million on the 16th of September 2021. The issuance, which has a 10-year maturity, was carried out through special purpose vehicle KT21 T2 Company, which was solely established to issue Sukuk. The Sustainability Sukuk was oversubscribed 12 times, with demand for the issuance exceeding USD 4.3 billion.

Why it Matters?

The Sustainability Sukuk, which is listed on the Irish Stock Exchange (Euronext Dublin), marks the world’s first regulatory capital Tier 2 environmental, social and governance (ESG) and Sharia...