Turkish Treasury mandates banks for panda market bond issue

Turkish Treasury mandates banks for panda market bond issue


Turkey has mandated the Bank of China, HSBC and the Industrial and Commercial Bank of China Limited (ICBC) to explore bond issuance opportunities in China’s Panda bond market, the Turkish Treasury stated on Feb. 21.

The Treasury mandated the institutions as part of its 2018 external borrowing program, it said.

Subject to regulatory approvals and market conditions, the issuance of Panda bond - yuan-denominated debt sold in China by foreign firms or governments - is expected to take place in 2018, it added.

Deputy Prime Minister Mehmet Şimşek sought in December 2017 Chinese investment for infrastructure products in Turkey during an official visit to Beijing.

On the trip Şimşek met ICBC Chair Yi Huiman and other executives of the bank to brief them about developments in Turkey’s financial sector.

Şimşek then also held meetings with important financial institutions in China, including the Panda-bond market.

Early in February, Şimşek reiterated Turkey’s bid to diversify its foreign debt mechanisms both geographically and instrumentally.

“Our sukuk issuance will continue in the future in addition to our Eurobond issuance. Additionally, our latest China visit was of great importance in these terms. We have applied to Samurai bond markets from time to time. Now we are seriously planning to enter China’s Panda bond market and we will soon announce our plan in this regard,” he said at the time.