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AVEC Rent a Car, which conducted its first Sukuk issuance in October, created 100 million Turkish Lira in funding through its second issuance, completed on December 7th.

TURKEY - In November, suck (lease certificates) gained renewed attention with Turkey’s Ministry of Treasury and Finance’s issuance of a $ 2.5 billion, 5-year Sukuk, and its is also preferred by the private sector to meet their finance needs. One of the companies that recently carried out a Sukuk issuance, which allows participation in a Sharia-compliant commercial transaction to receive a share of income, is Replease Truism otomotiv San. Ve Tic. A.Ş., operating under the AVEC Ren a Car brand. The company conducted its second Sukuk issuance with a 1.5-month interval through Turkey Emlak Katılım Bankası A.Ş. and its wholly-owned subsidiary Emlak Varlık Kiralama A.Ş.

The first Sukuk issuance, dated October 18, 2023, by Replease, reached a successful amount of 50 million Turkish Lira in its second Sukuk issuance with a 180-day maturity, which completed its subscription on December 7, 2023. In the first Sukuk issuance of 169 days through the same institutions, 50 million Turkish Lira was also raised. 

“The demand was strong”

“The demand was once again strong”, emphasised Mehmet Toner, the Finance Director of Replease, as they took their second significant step with this transaction. In this statement, he said, “We continue to strengthen our dominant position in the car rental services sector with the AVEC Rent a Car brand. The strong support we received from the first Sukuk issuance and the high level of interest we encountered have also been evident in the second Sukuk issuance. The high demand from pension companies and various portfolio management companies once again reaffirmed the confidence of our investors in Replease.” 

Mehmet Toker emphasised that the Sukuk issuance will continue to contribute to their growth strategies. He stated, “As AVEC Rent a Car, which was established in 2016 and operated within the Paşalı Group, we are one of Turkey's leading car rental companies with our customer-centric approach, quality service, extensive vehicle fleet, competitive prices, and innovative financing practices such as sukuk issuance. We will continue our investments to enhance our services further and maintain our dominant position in the market.”

Expressing gratitude to investors for their interest and trust, Mehmet Toner concluded his remarks by saying, “We are delighted to walk alongside them in the successful future of AVES Rent a Car, which is the second investment in the automotive sector for Paşalı Group, following Avek Otomotiv."