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Türkiye Wealth Fund (TWF) has secured a $600 million murabaha financing facility with a five-year maturity from a consortium led by Kuwait Finance House (KFH), according to a statement from the fund on Wednesday.
The transaction adds to Türkiye’s growing engagement in Islamic finance markets and strengthens financial ties with Kuwait, bringing the fund’s total Islamic financing to over $1.8 billion to date.
According to the statement, the fund continues to pursue its strategic goal of expanding and diversifying Türkiye’s financial markets, emphasizing its aim to deepen them through increased use of Islamic financial instruments such as sukuk (Islamic bonds) and murabaha (a cost-plus-profit financing method compliant with Islamic law).
Investments related to participation insurance, Islamic finance institutions, and the Istanbul Financial Center form part of this broader strategy to integrate more deeply with the global Islamic finance ecosystem, which was estimated to reach $5 trillion in volume by the end of 2024.
TWF said the financing was secured under competitive market conditions, without the need for collateral or guarantees, attributing this to its strong balance sheet, international credibility, and long-standing relationships with investors.
The fund noted that the agreement sets a benchmark in Türkiye in terms of both size and maturity for similar financial institutions.
The deal supports TVF’s efforts to reduce reliance on conventional borrowing by tapping alternative financing channels.
The development is part of a broader goal to boost Türkiye’s economic growth and strengthen capital markets through strategic investment, the fund stated.
Founded in 2016, TWF now oversees a portfolio that includes 31 companies across seven key sectors, along with two national licenses and significant real estate holdings.
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