ISTANBUL--Turkey's treasury said Monday it has mandated CIMB, Citigroup and HSBC to issue a 10-year dollar-denominated lease certificate, or sukuk, in international capital markets.

The treasury didn't give any further details in its statement.

A sukuk or lease certificate is structured so that it doesn't breach Islamic law which forbids conventional interest payments.

Turkey will sell the certificates to investors, who will then lease them back to the issuer at a fee. The fee replaces a traditional interest rate.

Write to Yeliz Candemir at yeliz.candemir@wsj.com

Citigroup (NYSE:C)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Citigroup Charts.
Citigroup (NYSE:C)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Citigroup Charts.