Thursday 28, September 2017 by William Mullally

Turkey announces plans to issue gold bonds and Sukuk

In a statement the Turkish Undersecretariat of Treasury announced plans to issue gold bonds and gold-based ‘rental certificates’ (Sukuk) through designated branches of state-owned Ziraat Bank from 2 October 2017. The move is aimed at diversifying financing instruments and expanding the country’s investor base.

In a statement the Turkish Undersecretariat of Treasury announced plans to issue gold bonds and gold-based ‘rental certificates’ (Sukuk) through designated branches of state-owned Ziraat Bank from 2 October 2017. The move is aimed at diversifying financing instruments and expanding the country’s investor base.

The first offer period runs 2-6 October 2017 and will be held in Istanbul, Ankara, Izmir, Bursa, Adana, Antalya, Diyarbakir, Rize, Sivas, Samsun and Zonguldak. Full information about the places and the branches where investments mat be made can be accessed online at https://www.hazine.gov.tr/ and http://www.ziraat.com.tr/.

The bonds and Sukuk will have a maturity of 728 days with a six-monthly coupon/lease rate of 1.20 per cent. Returns will be paid in Turkish Lira (TRY) direct to investors’ accounts. At maturity, investors who do not demand physical gold will be paid in grammes of gold to their bank accounts.

 

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