Key Takeaways
- • TPAO completed a $500 million tap issuance of lease certificates, expanding its inaugural $1 billion sukuk program under a $4 billion trust certificate issuance framework, demonstrating repeat-issuer status in Islamic capital markets.
- • The transaction represents a continuation of Turkey's largest corporate sukuk issuance, originally completed with Akin's advisory support, positioning TPAO as a benchmark issuer for Shariah-compliant emerging market debt.
- • Standard Chartered Bank and Emirates NBD Capital jointly led the offering, reflecting sustained institutional demand from international investors for high-quality Islamic finance instruments from Turkish public enterprises.
- • Akin's Dubai capital markets team, led by partner Rizwan Kanji, advised on both the formation of the underlying $4 billion program and this tap issuance, underscoring the firm's role in developing Turkey's sukuk market infrastructure.
- • The lease certificates were issued through TPAO's asset leasing subsidiary, TPAO Varlik Kiralama A.Ş., structuring the transaction as a Shariah-compliant instrument tied to underlying petroleum assets.
Summary
Türkiye Petrolleri Anonim Ortaklığı (TPAO), Turkey's state-owned oil and gas company, successfully executed a $500 million tap issuance of lease certificates under its $1 billion inaugural sukuk program, which itself operates within a broader $4 billion trust certificate issuance framework. This tap offering builds directly on TPAO's landmark inaugural sukuk issuance, which Akin also advised on and which holds the distinction of being Turkey's largest corporate sukuk to date and the first sukuk ever issued by a Turkish public economic enterprise.
The transaction was structured through TPAO's asset leasing company, TPAO Varlik Kiralama A.Ş., with Standard Chartered Bank and Emirates NBD Capital serving as joint lead managers. The lease certificates are Shariah-compliant instruments, reflecting the growing sophistication of Turkey's Islamic capital markets and the ability of state-backed Turkish enterprises to access diversified funding sources beyond conventional debt markets.
The successful tap issuance underscores TPAO's standing as a repeat issuer capable of efficiently accessing international capital under an established program framework. The transaction signals sustained institutional demand—particularly from international institutional investors—for high-quality, Shariah-compliant instruments from emerging market borrowers with strong credit profiles. This demand reflects both the maturation of Turkey's sukuk ecosystem and broader investor appetite for Islamic finance instruments from established government-linked entities.
Akin's Dubai capital markets team, led by partner Rizwan Kanji with counsel support from Nicola Minervini and Sahar Abas, advised on both the formation of TPAO's $4 billion program and this specific tap issuance. The firm's continued involvement across multiple phases of TPAO's sukuk program highlights Akin's central role in developing Turkey's Islamic capital markets infrastructure and its positioning as counsel of choice for landmark emerging market Islamic finance transactions.
The transaction was structured through TPAO's asset leasing company, TPAO Varlik Kiralama A.Ş., with Standard Chartered Bank and Emirates NBD Capital serving as joint lead managers. The lease certificates are Shariah-compliant instruments, reflecting the growing sophistication of Turkey's Islamic capital markets and the ability of state-backed Turkish enterprises to access diversified funding sources beyond conventional debt markets.
The successful tap issuance underscores TPAO's standing as a repeat issuer capable of efficiently accessing international capital under an established program framework. The transaction signals sustained institutional demand—particularly from international institutional investors—for high-quality, Shariah-compliant instruments from emerging market borrowers with strong credit profiles. This demand reflects both the maturation of Turkey's sukuk ecosystem and broader investor appetite for Islamic finance instruments from established government-linked entities.
Akin's Dubai capital markets team, led by partner Rizwan Kanji with counsel support from Nicola Minervini and Sahar Abas, advised on both the formation of TPAO's $4 billion program and this specific tap issuance. The firm's continued involvement across multiple phases of TPAO's sukuk program highlights Akin's central role in developing Turkey's Islamic capital markets infrastructure and its positioning as counsel of choice for landmark emerging market Islamic finance transactions.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.