Advising Dünya Katılım’s inaugural US$100m Additional Tier 1 capital issuance

Dünya Katılım is one of Türkiye’s newest participation banks and has experienced significant growth since launch, positioning itself as an emerging player in the domestic Islamic banking sector with a focus on innovative, Shari’a-compliant financial products.

The transaction was structured through Dunya Katilim Sukuk Ltd., a Cayman Islands-incorporated special purpose vehicle, and involved the issuance of perpetual, subordinated Additional Tier 1 certificates, which were admitted to trading on the Vienna MTF of the Vienna Stock Exchange, with support from our Ireland-based listing services, headed by Therese Redmond.

Our team, led by partner Ciaran Bohnacker and senior counsel Szymon Durlo, acted as Cayman Islands counsel on the transaction, with support from Walkers Professional Services' senior vice president Paul McGinness and vice president Jordan Hebert.

This transaction builds on our recent involvement in Vakıf Katılım Bankası A.Ş.’s debut Additional Tier 1 capital issuance and the subsequent establishment of its US$1.5bn sukuk programme, further demonstrating our ongoing role in advising on Shari’a-compliant regulatory capital transactions for Turkish participation banks.

Ciaran Bohnacker, Finance & Corporate partner at Walkers, commented: 'This inaugural AT1 issuance represents an important milestone for Dünya Katılım as it continues to build its capital base and expand its presence in the Turkish participation banking sector. We are pleased to have supported Dünya Katılım alongside other participation banks in Türkiye as access to Shari’a-compliant capital continues to grow.'