Kuveyt turk defied a horror show in global equity and credit markets on Monday to print a Basel Ⅲ compliant Tier 2 sukuk transaction. But it needed good support from the leads to get the deal done, leading some bankers to question why the issuer did not do a formal club loan. The Turkish participation bank, which is 62% owned by Kuwait Finance House, raised US$350m through a 10-year non-call five Islamic bond that priced at 7.90%, 10bp inside initial profit thoughts of the 8% area. The deal came four months after it was initially marketed as volatile conditions kept Kuveyt Turk on the sidelines. However, the backdrop proved equally tumultuous on Monday as equity and credit markets sank, with the iTraxx Crossover and Subordinated Financial indices both widening more than 40bp.
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