Kuveyt Turk’s $350 Million Issuance of Trust Certificates

Akin Gump has advised Kuveyt Turk Katilim Bankasi on the deal.

As reported in CEE Legal Matters and in other online publications, Kuveyt Türk Katilim Bankasi had a landmark issuance of US$ 350 million of fixed-rate resettable sustainability Tier 2 certificates due 2031, listed on the Irish Stock Exchange plc (Euronext Dublin). These trust certificates are the world’s first regulatory capital Tier 2 environmental, social and governance (ESG) and Islamic compliant trust certificates. The certificates were issued on September 16, 2021, through KT21 T2 Company Limited, a Cayman Islands incorporated special purpose vehicle. The issuance achieved the tightest pricing for any Tier 2 Issuance out of Turkey since 2017 at 6.125%.

Kuveyt Türk Katilim Bankasi A.S. is majority owned by Kuwait Finance House. Kuwait Finance House was established in the State of Kuwait, in 1977, as the first bank operating in accordance with the Islamic Shari’a.

Akin Gump’s team included Partner Rizwan Kanji, Counsel Hamed Afzal, and Associate Sahar Abas.

Involved fees earner: Sahar Abas – Akin Gump Strauss Hauer & Feld LLP; Hamed Afzal – Akin Gump Strauss Hauer & Feld LLP; Rizwan Kanji – Akin Gump Strauss Hauer & Feld LLP;

Law Firms: Akin Gump Strauss Hauer & Feld LLP;

Clients: Kuveyt Turk Katilim Bankasi A.S.;

Author: Naoual Sadouqi