ISTANBUL — Turkey is set to mandate HSBC, Citi and Deutsche Bank to manage the sale of its first sukuk, or Islamic bond, banking sources told Reuters on Thursday. The move by the Treasury, overcoming sensitivities about Islamic finance in the secular republic, should give Turkey access to a wider pool of investors via a global sukuk market estimated at more than $100 billion. One banker said a size of $1 billion was being targeted, but that the sale amount was still unclear. “The Treasury is about to finalise meetings about its first sukuk issue, and their choice (for the mandate) will be HSBC, Citi and Deutsche," said one senior banking source in London. A sovereign sukuk from an economy regarded as one of the Muslim world's most progressive and successful would signal intent on Turkey's part to play a bigger role in Islamic finance. Deputy Prime Minister Ali Babacan said earlier this year the Treasury might launch a sukuk issue within a few months, using legislation already in place. A sovereign deal would set a benchmark for future sukuk issues by banks and companies. The general manager of Turkish Islamic bank Turkiye Finans, majority owned by Saudi Arabia's National Commercial Bank , told Reuters late on Wednesday it planned a $300 million sukuk issue in the next six to nine months. — Reuters
