Participation Banks Smash Records with 119.5 Billion TL Sukuk Issuance in H1

The participation banking sector has deepened its footprint in capital markets by issuing 119.5 billion TL worth of sukuk in the first half of the year, raising the cumulative issuance volume since 2013 to 861.5 billion TL.

Historical Accumulation and Bank-Specific Performance

■Ziraat Participation Bank leads the historical chart with a total issuance volume of 197.8 billion TL.

■The ranking is followed by Albaraka Turk with 167.3 billion TL, Türkiye Emlak Participation with 152 billion TL, and Vakıf Participation with 144.7 billion TL.

■The current live issuance volume in the market stands at 68.3 billion TL, with an average maturity structure of 139.97 days.

Currency Diversification and Global Funding

■In FX-based issuances, Kuveyt Turk maintains the lead in dollar-denominated sukuk with $2.532 billion.

■In alternative currencies, Türkiye Finans dominates the Malaysian Ringgit market with 1.2 billion ringgit, while Ziraat Participation accounts for the entire 250 million euro volume in Euro issuances.

■87.97% of issuances were sold to qualified investors, highlighting the depth of institutional trust.

Strategic Outlook and Sustainable Growth

TKBB Secretary General Ismail Vural stated that the 119.5 billion TL volume demonstrates the sector's high financial flexibility. Vural projected that the total volume would reach 250 billion TL by year-end, emphasizing that sukuk acts not just as a funding instrument but as a strategic bridge directing savings to the real sector.

This surge in sukuk issuance reflects the Turkish financial sector's determination to reduce dependency on traditional credit mechanisms and increase balance sheet diversity. The rise in FX-denominated issuances specifically signals increased resilience against global liquidity conditions and a broadening international investor base, a trend clearly visible in the underlying data sets.