King & Spalding advised Asya Katilim Bankasi A.Ş. (Bank Asya), the largest Turkish participation bank, on the issuance of US$250 million resettable subordinated tier 2 certificates in a landmark Shari’ah-compliant capital markets transaction.
The certificates, listed on the Irish Stock Exchange and due in 2023, are the first subordinated tier 2 Shari’ah-compliant certificates to be issued from Europe, Turkey and the Middle East. The certificates are issued through Asya Sukuk Company Limited, a Cayman Island incorporated special purpose vehicle.
The King & Spalding team that advised on the deal was led by Dubai-based Middle East and Islamic finance partner Rizwan H. Kanji, with senior associate Lidia Kamleh, associate Pavandeep Gill and transactional specialist Gina Bunker supporting. The joint lead managers on the transaction were Bank of America Merrill Lynch, EmiratesNBD, HSBC and National Bank of Abu Dhabi PJSC, which were advised by Allen & Overy.
“This is a landmark transaction,” said Kanji. “It is a debut by Bank Asya in the international capital markets and the first tier 2 Sukuk outside of Asia. This transaction should facilitate other potential capital funding issuances by participation banks in Turkey in a similar manner.”
King & Spalding’s debt capital markets team in Dubai has extensive experience advising on Sukuk issuances from Turkey, including the first-ever Turkish Sukuk and the first Sukuk under the amended Turkish legislation in 2011.
