Biotrend Cevre ve Enerji Yatirimlari (Biotrend) has issued its debut Sukuk, a three-month TRY60 million (US$2.83 million) sustainability facility, on the 27th April 2023 to finance sustainable investments for the alternative energy production investment company.
Proceeds from the facility will fund Biotrend’s investments in energy efficiency, circular economy and renewable energy projects.
Present in 11 cities across Turkiye, the company also invests in integrated solid waste management, recovered heat as well as carbon certification and trading.
Arranged by Turkiye Kalkinma ve Yatirim Bankasi (the Development and Investment Bank of Turkiye) with Ziraat Securities as the bookrunner, the facility was issued via the development bank’s SPV, Kalkinma Yatirim Varlik Kiralama.
According to Dilan Pamir, the director of investment banking and capital markets advisory at the Development and Investment Bank of Turkiye, the pricing strategy of the facility contributed to strong demand, despite the challenging prevailing market conditions.
“The issuance, which aimed to collect TRY50 million (US$2.35 million), received an oversubscription of 20% and was completed at TRY60 million,” Dilan told ISFI.
While the issuance was oversubscribed, Dilan noted that investor demand for short-term debt as well as ensuring the facility was in alignment with the sustainability framework were two of the challenges faced.
With a TRY100 million (US$4.71 million) issuance limit approved by the Capital Markets Board of Turkiye on the 18th April this year, the company is expected to issue further facilities in the near future.
According to Dilan, the upcoming Sukuk facilities, with a remaining issuance limit of TRY40 million (US$1.88 million), are expected to be sustainable and utilize hybrid Sukuk structures.
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Biotrend’s Debut Sukuk TRY60 million (US$2.83 million)  27th April 2023 |
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| Summary of terms and conditions | |
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Issuer |
Kalkinma Yatirim Varlik Kiralama |
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Obligor |
Biotrend Çevre ve Enerji Yatirımlari |
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Size of issue |
TRY60 million (US$2.83 million) |
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Mode of issue |
Qualified investors |
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Purpose |
Providing funds for sustainable investments in several areas |
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Tenor |
91 days |
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Profit rate |
35% |
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Payment |
Payment on redemption date |
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Currency |
Turkish lira |
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Maturity date |
27th July 2023 |
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Lead manager(s) |
Turkiye Kalkinma ve Yatirim Bankasi |
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Principal advisor(s) |
Turkiye Kalkinma ve Yatirim Bankasi |
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Bookrunner(s) |
Ziraat Yatirim Menkul Degerler (Ziraat Securities) |
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Governing law |
Turkish law |
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Legal advisor(s)/council |
Ozmen & Yalcin Law Office |
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Islamic structure |
Wakalah |
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Listing |
Istanbul Stock Exchange |
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Underlying asset |
Biomass and biogas |
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Rating |
‘A+’ by JCR Ratings |
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Shariah advisor(s) |
ISFA Islamic Finance Consultancy |
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Tradability |
Yes |