Global law firm Norton Rose Fulbright has advised Albaraka Turk Katilim Bankasi A.S. (Albaraka Turk) on the issuance of its $205 million additional tier one capital (AT1) Sukuk.

The Basel III compliant Sukuk is the first AT1 in Turkey and was issued through a special purpose vehicle, Bereket One Ltd., by way of a private placement. The Sukuk was admitted to the official list and to trading on the regulated market of the Irish Stock Exchange.

The Norton Rose Fulbright team was led by Dubai-based partner Gregory Man with assistance from London-based partner Nikolai Mikhailov and senior associate Ganna Vlasenko.

Albaraka Turk is a subsidiary of leading Bahrain Albaraka Banking Group. Albaraka Turk was established as the first interest-free bank in Turkey in 1984 and commenced commercial operations in March 1985. Albaraka Turk's business is undertaken in compliance with the principles of interest-free banking, known as participation banking.

Gregory Man, partner, commented:

"As the first Basel III compliant tier one deal to come out of Turkey, and the first in Sukuk format, this is a milestone transaction for the market. Having worked with Albaraka Turk for a number of years we are delighted to bring such a significant transaction to successful close.

"We are also pleased to have been able to build on our reputation in Turkey, which remains an important market for the firm."

Norton Rose Fulbright's leading Islamic finance and debt capital markets team continues to advise on the market's most innovative transactions, having most recently advised Al Rayan Bank Plc on its Sharia-compliant securitisation of home purchase plans.