Leading international law firm Clifford Chance has advised the Joint Lead Managers on the inaugural issuance of US$500 million senior unsecured lease certificates (“Sukuk”) by Ziraat Katılım Bankası A.Ş. (“Ziraat Katılım”). The Sukuk were issued in accordance with Regulation S of the U.S. Securities Act of 1933 and are listed on Euronext Dublin.
Ziraat Katilim, a wholly-owned subsidiary of Türkiye Cumhuriyeti Ziraat Bankasi A.Ş., is a full-service participation bank that carries out its business in compliance with the principles of interest-free banking, known as participation banking in Türkiye, and Shari’a principles.
The 3-year Sukuk was priced at a profit rate of 9.375 per cent. which was at the lower end of initial pricing guidance. The issuance was more than five times oversubscribed, attracting a range of local, regional and international investors from 24 countries, thus representing the largest oversubscription for a Turkish transaction to-date in 2023.
Clifford Chance’s team comprised partner and Head of Middle East Capital Markets, Stuart Ure (Dubai), partner and Global Head of Islamic Finance, Qudeer Latif (Dubai), partner, Sait Eryılmaz (Istanbul), Nader Koudsi (Senior Associate, Dubai), Julian Walley (Senior Associate, Dubai), Shauaib Mirza (Consultant, Dubai), Bilgesu Cakmak (Associate, Istanbul) and Nabeela Afifi (Trainee, Dubai).
Clifford Chance partner Bruce Kahl led the team advising the representative, HSBC Bank plc, supported by Andrew Whelan (Senior Associate, London) and Micah McDonald (Associate, London).
Stuart Ure commented: “We are delighted to have supported Ziraat Katılım and the Joint Lead Managers on this issue – the first international Reg S sukuk issued by a state-owned participation bank in Türkiye and the first non-Sovereign sukuk issuance from Türkiye since 2021. The success of the transaction is a testament to the strength and dedication of the Ziraat Katilim and Joint Lead Managers’ teams, and reflects the strong appetite from the global investment community for access to the sukuk.”
Dubai Islamic Bank, Emirates NBD Capital, HSBC and Standard Chartered Bank were Joint Lead Managers on the issuance.
Consistently ranked Band 1 in legal directories, Clifford Chance was awarded 15 awards at the Bonds, Loans & Sukuk Awards 2023 and 8 awards at the IFLR Middle East Awards 2023. Clifford Chance was named Banking Legal Adviser of the Year at the Bonds, Loans & Sukuk Middle East Awards 2022, International Law Firm of the Year at the IFLR Middle East Awards 2023, International Law Firm of the Year (Middle East) at the Middle East Legal Awards 2023 and Middle East International Law Firm of the Year at the Chambers Middle East Awards 2023
