Tarfin’s first SUKUK issuance is worth 40 million TL
Combining the agricultural supply chain with the power of financial technology, Turkey's leading digital agriculture platform Tarfin has issued the first agricultural security that covers the entire sector from large producers to small farmers, as well as adhering to the principles of Islamic finance.
Tarfin, Turkey's leading digital agriculture platform, continues to pioneer and create value in the sector.
With the issuance of TL 742 million of securities completed to date, Tarfin, as a company experienced in capital markets, completed the first "lease certificate" (Sukuk) issuance with a maturity of 61 days and a nominal amount of TL 40 million. This issuance emerged due to Tarfin's cooperation with the Development and Investment Bank of Turkey and Ziraat Investment Securities and attracted great interest.
With the issuing of this Sukuk, Tarfin has ensured that all cash flows, from product delivery to selling these items to farmers, are by Islamic financial principles.
As a consequence of the collaboration with ISFA Islamic Finance Consultancy, the permission document for the agricultural input supply service offered by Tarfin to its farmers was issued in February.
An essential step for sustainability in agriculture
Tarfin CEO Mehmet Memecan stated that by issuing the first agricultural Sukuk, they took an important step toward diversifying financing opportunities in the sector. Memecan noted the significance of various financing options that will support the agricultural supply chain in the following statement about Tarfin's Sukuk issuance: "We think that among the 3 billion people in the world who do not have access to financial products, the proportion of those who prefer to live following Islamic rules is quite high. In this context, with the agricultural market experiencing increased competition, developing innovative financing models and lowering sector costs are crucial to preserving the sustainability of agriculture. Therefore, we at Tarfin will keep promoting agriculture without slowing."
Tarfin has different Sukuk targets for the new farming season.
A Sukuk, issued to finance the government and businesses, also provides investors with the option of interest-free returns under Islamic guidelines.
Sukuk (lease certificates), which are securities that adhere to the rules of interest-free financing and give their investors rights based on their share of the revenues, offer significant advantages to businesses, investors, and the sector.
Sukuks, issued to provide financing to the government and businesses, also allows its investors to earn interest-free returns by Islamic principles. Sukuk (lease certificates), which are securities that adhere to the principles of interest-free financing and give their investors rights proportionate to their share of the revenues, provide significant benefits to both companies and investors, as well as the whole sector.
Memecan claimed that after receiving the certificate of ratification, they could issue Sukuk to draw more investors into the Turkish agricultural sector. He added that they have supported the production of roughly TL 7.5 billion in agriculture and provided agricultural inputs to more than 45,000 farmers.
