Al Baraka Banking Group has announced that its Turkish subsidiary, Al Baraka Turk Participation Bank, has successfully completed issuance of sukuk worth $350 million.

The sukuk al wakala-murabaha was heavily oversubscribed, with value of subscription reaching $750 million.

The issuance was through the bank's leasing subsidiary, Bereket Varlik Kiralama, while the obliger is Al Baraka Turk Participation Bank.

The issue rated BB by Standard & Poors, is listed on the Irish Stock Exchange and carries profit rate of 6.25 per cent per annum for a period of five years.

Many banks, financial institutions and investment funds from different main world financial centres participated in the issue with 61 per cent of them being from Middle East, 31 per cent from Europe and 8 per cent from Asia.

The joint lead managers of the issue were Emirates NBD Capital, Nomura, QInvest and Standard Chartered Bank.

In terms of investors, 80 per cent were banks and financial institutions, 8 per cent funds, 6 per cent hedge funds and 6 per cent agencies.

"We are delighted at the success of the sukuk, given the prevailing fluctuations in financial markets and world economic conditions," Al Baraka Banking Group president and chief executive and Al Baraka Turk Participation Bank chairman Adnan Ahmed Yousif said.

"This endorses the strength of the position and reputation of Al Baraka Turk Participation Bank in the Turkish market," he added.

Last year, the bank expanded its investment and financing portfolio.

As a result, Al Baraka Turk's total operating income increased by 35 per cent to $447 million. Net income was $121 million, an increase of 19 per cent compared with the same period of 2012.-TradeArabia News Service