The Islamic unit of Ziraat Bank, which is known as a participation bank in Turkey, is going to be the first state bank to decide this kind of transaction to develop the sector in the 16th biggest economy of the world.
They have decided to sell 1.5 billion TL ($501.9 million) worth of bonds (sukuk) thorough Turkey’s Capital Markets Board (SPK).
No other information is provided to the market except that the transactions will be held by qualified investors (?).
Kuveyt Türk, also is a participation bank, decided a transaction worth 1.85 billion TL.
Islamic units have developed slowly in Turkey, because there are so many sensitive situations in politics and the secular laws, but now the new era is beginning.
Ziraat Participation Bank was established in 05.2015, with 675 million TL capital.
Future plans to have 170 branches and 2,200 staff at the end of 2018.
At the end of February, Vakıfbank also applied for its Islamic unit by the direction of Recep Tayyip Erdogan.
The pariticipation banks hold 5 % share of asssets of the banking sector. There are only six of them.