(Recasts with amount raised)
ISTANBUL Oct 2 Turkey said on Tuesday it had
raised 1.62 billion lira ($904 million) through a
lira-denominated sovereign sukuk, the government's second issue
of an Islamic bond as it diversifies its sources of financing.
Total bids for the two-year lease certificate stood at 3.275
billion lira, the Treasury said in a statement. The paper will
pay a lease return of 3.7 percent semi-annually.
Demand for the paper had been expected to be high after the
country raised $1.5 billion through its first foray into the
global Islamic bond market last month.
The debut bond offering last month attracted an order book
nearly five times the issue size.
"Participation banks have been expecting this instrument.
It's very attractive for participation banks, because it has a
secondary market, and because of its zero risk from a capital
ratio perspective," the Turkish unit of Bahraini lender Al
Baraka's deputy chief executive Ayhan Keser said last month.
"Participation banks" is a term used in Turkey to refer to
($1 = 1.7964 Turkish liras)
(Writing by Seda Sezer; Editing by Nick Tattersall)