Turkish participation banks issue 119.5 billion TL in sukuk in H1 2026

Turkish participation banks placed sukuk worth 119.5 billion Turkish lira in the first half of 2026, bringing the cumulative total since 2013 to 861.5 billion lira. Ziraat Katılım Bankası led historic issuance with 197.8 billion lira, followed by Albaraka Türk (167.3 bn), Türkiye Emlak Katılım (152 bn), Vakıf Katılım (144.7 bn), Kuveyt Türk (98.4 bn) and Türkiye Finans (84.8 bn). The average maturity of the issues was 139.97 days and live sukuk on the market amount to 68.3 billion lira.

The structure of the issuances was dominated by management‑contract sukuk (776.3 bn lira), with smaller portions classified as hybrid, buy‑sell and ownership‑based. About 88% of the volume was sold to qualified investors, 7.5% via public offering and 4.5% through allocated sales. In foreign‑currency sukuk, the dollar was the most used currency, led by Kuveyt Türk (US$2.532 bn), Albaraka Türk (US$1.095 bn) and Türkiye Finans (US$1 bn). Malaysian ringgit issuances were headed by Türkiye Finans (1.2 bn ringgit) and Kuveyt Türk (0.8 bn ringgit), while the euro tranche of 250 million euros was issued solely by Ziraat Katılım.

TKBB Secretary‑General İsmail Vural said the strong performance reflects the sector’s financial flexibility, solid balance‑sheet strength and sustainable growth, noting that the active issuance of sukuk deepens the private‑sector market and supports the use of variable‑rate pricing mechanisms such as TLREFK.