Turkish Petroleum Corporation has closed a five-year Islamic bond offering totalling $1 billion (€850 million), drawing investor commitments exceeding $5.5 billion from institutions across Europe, the Gulf, Asia and America, Energy Minister Alparslan Bayraktar announced a.

The sukuk issuance represents Turkey's largest corporate Islamic finance transaction and marks the first such offering by a state-owned enterprise. Demand reached 7.3 times the original target, prompting TPAO to increase the offering from an initially planned $750 million, according to Hürriyet Daily News.

Bayraktar characterised the transaction as historic, achieved through participation from 165 international investor institutions spanning multiple continents. "This depth of demand, achieved with the participation of 165 international investor institutions across a broad geography stretching from Europe to the Gulf and from Asia to America, demonstrates the confidence in Türkiye's energy vision and our Sakarya Gas Field and Gabar projects," Bayraktar wrote on social media platform X.

The offering priced at 6.3 per cent, with the expanded size cementing TPAO's position in global capital markets. "We will continue to add value to our country by creating alternative financing sources for the major projects we are carrying out as part of our national energy outlook," the minister said.

Kuveyt Türk Yatırım provided financial advisory services for the transaction, with KFH Capital, Emirates NBD Capital and Standard Chartered Bank serving as global coordinators. Abu Dhabi Commercial Bank, Bank ABC, Dubai Islamic Bank, First Abu Dhabi Bank, Mashreq, Sharjah Islamic Bank and Warba Bank participated as joint lead managers.

The funds will support TPAO's ongoing energy projects including the Sakarya gas field in the Black Sea and the Gabar oil field in southeastern Turkey, both representing strategic priorities for reducing import dependency.

Access detailed transaction structure and investor allocation breakdown for TPAO's sukuk offering in the full report.