FC Sukuk


What is Foreign Currency Sukuk? (FC Sukuk)

FC Sukuk is generally a long-term debt instrument offered by governments or companies for sale in foreign currencies in international markets.
As Ziraat Katılım, we use USD and EUR denominated FC Sukuk issued based on Ijarah.

What are the Features of FC Sukuk?

  • It is an investment instrument with high liquidity. The transaction can be exited at any time within the framework of market conditions.
  • In addition to the return if held until maturity, it provides periodic cash flow through coupon payments.
  • Principal and coupon payments are made in the issued currency.
  • Foreign Exchange Sukuk in US Dollars every 6 months; Euro-denominated FC Sukuk provide an annual coupon payment.
  • FC Sukuk do not establish a partnership relationship with the issuer institution: A debtor-creditor relationship is established with the transaction.
  • Maturity can generally vary between 2 and 30 years.
  • At the end of maturity, the nominal amount of the FC Sukuk is paid to the holder.
  • Returns are not subject to withholding tax. It is applied subject to declaration according to the status of the investor.
  • FC Sukuk cannot be delivered physically to our customers.
  • Before FX Sukuk transactions are carried out, Private Banking customer and Qualified Investor registration must be created for our customer.
  • The concepts of coupon dividend rate and return are different from each other. The coupon profit share rate of FX Sukuk is fixed and does not change until the end of maturity. If the dividend rate and sales price change in the market, the FC Sukuk yield will also vary according to the sales price. If the FC Sukuk is held until maturity, the return the investor will receive will be based on the sales price on the date of purchase of the FC Sukuk and the return corresponding to all coupon dividend amounts.


Who Should Prefer FC Sukuk?

Individuals and organizations who prefer to invest their savings in foreign currency investment instruments and intend to make long-term investments (usually 2-30 years) can choose FC Sukuk.

To carry out your Eurosukuk transactions, you can contact your customer representative or our Private Banking Customer Line.