In order to diversify alternative financing opportunities and its funding portfolio, Alternatif Lease successfully made the first sukuk issuance in its history. 

Alternatif Lease, ranking among long-established leasing institutions in Türkiye for almost 30 years, continues to mediate investment financing across the country. Most recently, Alternatif Lease successfully completed the sukuk issuance performed by means of Real Estate Asset Leasing and provided its clients with a more cost-effective financing opportunity.

In order to diversify its funding portfolio, Alternatif Lease conducted book building on 12 August 2024 in respect of sale of lease certificates with 728-day maturity, at a nominal value of TRY 100 million, to qualified investors on 13 August 2024, and it received 100% demand. In the lease certificate transaction based on management agreement, performed within the scope of the issuance cap of TRY 500 million, first lease certificate issuance permit for which was obtained from the Capital Market Board on 13 June 2024, (leasing portfolio comprising machinery, equipment, and similar fixed assets, management of which was in line with interest-free financial principles, was used as underlying asset in the sukuk issuance. 

Alternatif Lease CEO Ateş Yenen made the following remarks about the first sukuk issuance that they performed: 

“Unpredictable changes that might occur in interest rates not only obstruct investments, but also cause unrest in terms of pricing. The fact that TRY portfolio is 30% to 40% and with long maturities in the leasing sector poses interest risk in maturity mismatches for leasing firms. As Alternatif Lease, we aimed to eliminate TRY maturity mismatch and offer more cost-effective financing to our clients with this resource that we provide with a long-term. Our issuance, which attracted great interest from qualified investors, was met with 100% demand. I believe that this sukuk issuance, which we performed successfully and which is a first in the history of Alternatif Lease, is an indicator of increasing continuation of our support to our sector and clients.”

“Contributing to investment growth as a leasing company is our greatest source of happiness” 

Yenen also briefly mentioned future plans of Alternatif Lease and stated, “Our priority targets include providing financial support to investments of small-medium-large scale establishments and contributing to expansion of the sector in our country. Contributing to investment growth as a leasing company that is on the side of our clients, both as consultants in investment decisions and as financiers in funding their investments with our boutique services, is our greatest source of happiness. In 2024, we will aim for a growth in parallel with the sector and reinforce the synergy that we created with Alternatif Bank and our cooperations with vendor companies further, as we did in previous years. As Alternatif Lease, we will continue to increase our share in investments and machinery financing in Türkiye with the long-term resources that we provide thanks to our ‘B+’ Long Term Local Currency rating that we received from Fitch Ratings and the advantages of being a bank subsidiary. Thus, we will maintain our contribution to production, economic growth, and employment by supporting the investments of real sector”.