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Türkiye’s state oil and gas company, Turkish Petroleum (TPAO), secured $1 billion through a five-year sukuk issuance, marking the first such transaction by a public economic enterprise in the country and the largest corporate sukuk ever completed domestically.
Energy and Natural Resources Minister Alparslan Bayraktar said on Thursday that the transaction drew $5.5 billion in total demand, 7.3 times the initial target, underscoring strong international investor interest.
The issuance was initially planned at $750 million but was increased to $1 billion following higher-than-expected demand, and it was priced at a yield of 6.30%.
The sukuk was arranged with Kuwait Turk Investment acting as a financial advisor, while KFH Capital, Emirates NBD Capital, and Standard Chartered Bank served as global coordinators.
Abu Dhabi Commercial Bank, Bank ABC, Dubai Islamic Bank, First Abu Dhabi Bank, Mashreq, Sharjah Islamic Bank, and Warba Bank joined the transaction as joint lead managers, TPAO said.
Bayraktar said 165 international investor institutions participated in the issuance, with buyers spanning Europe, the Gulf, Asia, and the Americas.
"This level of demand from a broad geography extending from Europe to the Gulf and from Asia to the Americas reflects international confidence in Türkiye’s energy vision and our Sakarya Gas Field and Gabar projects," he said.
Bayraktar added that the transaction reinforces TPAO’s standing in international capital markets and aligns with Türkiye’s broader effort to diversify financing for large-scale energy investments.
"We will continue creating alternative financing sources for the major projects we are carrying out under our national energy strategy, adding further value to our country," he said.
Founded to carry out hydrocarbon exploration and production on behalf of the state, TPAO has led key drilling and development activities across domestic and international projects.
The company operates Türkiye’s national offshore drilling fleet, including vessels such as Fatih and Kanuni, supporting Black Sea exploration and other operations.
The company is projected to reach approximately 500,000 barrels of oil and gas production per day by 2028, with a longer-term goal of scaling up to 1 million barrels per day through new exploration, mergers, and acquisitions.
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