Turkish Sukuk Borrowing Rate Jumps 2.16%

The cost of issuing a two year Turkish sovereign sukuk has jumped 2.16% since February of this year as concerns about the health of the Turkish economy and its currency push up borrowing costs.

The Treasury of the Republic of Turkey issued a two year Sukuk for 1.5 billion Turkish Lira this week at an annual profit rate of 9.96% (payment split in two to be paid twice a year). Compared with a similar issuance in February the Turkish Treasury was able to raise a slightly larger amount of 1.8 Billion for the same two year maturity period at a profit rate of 7.8%.

Turkish Sukuk Borrowing Rate Jumps

The Turkish Lira has been suffering losses against a surging US Dollar while Borsa Istanbul’s BIST-100 index was at its lowest level at the close of the daily session on Friday. The benchmark index decreased by 884.07 points to close at 73,797.77.