Islamic finance awards 2013: Republic of Turkey sukuk
Best sukuk deal
Lead managers: HSBC, Liquidity Management House, Citi It was an outstanding year for the sukuk market and there were many candidates for this award, including the $4 billion issue from Qatar and the $1 billion hybrid tier 1 issue from ADIB (given the award in our Middle East deals of the year).
But Turkey’s $1.5 billion 5.5-year sukuk was enormously impressive. It was its debut as a sovereign sukuk issuer, the biggest ever sovereign debut, and this from a Ba1/BB/BB+ rated issuer. It was the culmination of a decade of slow progress in getting the legislation in place in early 2012 for a sukuk to be launched at all. It creates the possibility of much more government-linked and corporate issuance from Turkey. And, perhaps most impressively, this large debut issue priced 10 basis points inside the Republic of Turkey’s conventional curve.