Kuveyt Turk Katilim Bankasi Raises 10-Year ESG Tier 2 Certificates

Posted on 09/19/2021

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.

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%.

Law firm Akin Gump Strauss Hauer & Feld LLP advised Kuveyt Türk Katilim Bankasi on the capital raise. The joint bookrunners were Bank ABC, Citi, Dubai Islamic Bank, Emirates NBD Capital, KFH Capital, and HSBC.

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