Arnold & Porter Represents Republic of Turkey in Its Second Islamic Bond Offering
New York and London, October 11, 2013 -- The Republic of Turkey closed today a $1.25 billion Sukuk offering, its second such closely-watched financing transaction within the last 14 months. The Republic had closed its first-ever Islamic finance offering in September, 2012, which consisted of lease certificates due in 2018 and had also raised $1.5 billion. In the latest offering, the New York and London offices of Arnold & Porter LLP again acted as Turkey's international legal counsel, in association with Somay Hukuk Burosu, the Republic's Turkish counsel.
Both ground-breaking finance offerings by the Turkish government are designed to comply with Shariah law. The Sukuk involved the issuance of lease certificates representing interests in Turkish government real estate assets that are transferred to the issuer and leased back to the government.
Steven G. Tepper, the Arnold & Porter partner who led the effort on behalf of Turkey and who has represented the country in financial offerings for almost 20 years said, "Arnold & Porter is proud to continue to help Turkey, a long-time client, gain access to new financial markets. This offering will continue to broaden Turkey's base of investors to include those who have a preference for investments that comply with the principles of Islamic finance."
In addition to Mr. Tepper, the Arnold & Porter team included Deidrie Stone and Rebecca Crawford in New York and Jeremy Willcocks and Ben Kieft in London. The Somay Hukuk Burosu team included Sera Somay and Nazli Kurbanzade. Clifford Chance served as legal advisors to the underwriters.
Arnold & Porter has a long and distinguished history of advising international governments in financial transactions and related issues and undertakings. It has been active in representing the ministries of finance and central banks of many sovereign governments since well before the original debt crisis of the 1980s. It has been involved in numerous financial transactions on behalf of sovereigns throughout Latin America, the Caribbean, Europe, Africa and Asia. Among its sovereign clients are Brazil, Costa Rica, El Salvador, Hungary, Israel, Pakistan, Turkey, Tunisia, Panama and Venezuela. The firm has also represented and advised a number of the world's most prominent multilateral financial institutions, including the World Bank, the Inter-American Development Bank, the International Finance Corporation, OPIC, the European Bank for Reconstruction and Development, and the Bank for International Settlements, in significant financial transactions and other novel legal assignments.