S&P: Bereket Varlik sukuks BB

Standard & Poor’s said it today assigned a preliminary BB rating to Bereket Varlik Kiralama AS’s proposed $500 million sukuk certificates.

Bereket Varlik Kiralama, an asset lease company in the form of a joint-stock company incorporated in Turkey, plans to issue the certificates for a targeted amount of $500 million with a fixed profit rate, S&P said.

Bereket Varlik Kiralama will enter into a Murabaha agreement for 49% of the issued amount and a Wakala agreement for 51% of the issued amount with Albaraka Turk Katilim Bankasi AS, a subsidiary of Al Baraka Banking Group BSC, the agency said.

The rating on the lease certificates reflects the rating on Albaraka Turk, owing to the full credit enhancement mechanisms provided by Albaraka Turk on both the principal and the periodic distribution amounts, S&P said.

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