NEWSROOM

While the volume of ṣukūk issuances is expected to increase in the coming period, a new step came from the car rental sector. AVEC Rent a Car realized its first ṣukūk issuances of 50 million TL. According to the statement made by Avec, there was intense interest, especially from pension and asset management companies.

TURKEY - According to the 2023 Stability Report published by the Islamic Financial Services Board (IFSB), the Islamic capital market accounted for 29.8% of global Islamic financial services sector assets by the end of 2022. According to the report, independent and multilateral sukuk (lease certificate) issuances are behind the market's positive performance. According to the Financial Stability Report published by the Central Bank of the Republic of Turkey (CBRT), despite conditions such as the pandemic and the increase in geopolitical risks in the last 3 years, no significant change is observed in the sukuk yield rate spread, and the issuance volume is expected to increase.

Replease Turizm Otomotiv San. ve Tic. A.Ş., which provides services under the AVEC Rent a Car brand, is one of the companies that have recently realized the issuance of sukuk, which enables a share of income by participating in a commercial transaction in accordance with Islamic law. A.Ş. The car rental company added to its alternative financing instruments by realizing its first ṣukūk issuances through Türkiye Emlak Katılım Bankası A.Ş. and its 100% subsidiary Emlak Varlık Kiralama A.Ş. (Emlak VKŞ). Release issued a TL 50 million lease certificate with a maturity of 169 days on October 18. 

"We faced intense interest"

Emphasizing that Sukuk will make significant contributions to their growth strategies, Replease Finance Director Mehmet Toker said, “In our lease certificate issuance, a fleet portfolio whose operation complies with interest-free finance principles was used as the underlying asset. The rental income generated by the fleet portfolio transferred to Emlak VKŞ on the basis of fiduciary ownership will be distributed to the investors participating in our issuance in proportion to their shares on the redemption date. On October 18th, in our first ṣukūk issuances, we received a great deal of interest, mainly from pension companies and various asset management companies in the sector. The successful completion of the issuance was also an indicator of investors' trust in Replease.”

Mehmet Toker said that Avec Rent a Car was established in 2016 and operates within the Paşalı Group, "As AVEC Rent a Car, we have taken our place among Turkey's leading car rental companies in a short time with our fleet of more than 6,500 vehicles. We provide daily individual and corporate rental services with our 20 offices located in Istanbul, Ankara, Izmir, Antalya, Adana, Trabzon, Kayseri, Çanakkale, Bodrum, Dalaman, Edremit, Rize. As Paşalı Group, we operate with our brands Avec Otomotiv in automotive, Avec Rent a Car (Replease Turizm Otomotiv San. Ve Tic. A.Ş.) in car rental, Avec Hotel in tourism, Gürtaş Yapı in construction and TronaPay in nano technology.