Turkey's Treasury extends period to collect demand for FX bonds
The Treasury and Finance Ministry will continue to collect bids for euro-denominated and U.S. dollar-denominated government bonds until Feb. 1 upon demands from investors, it said on Jan. 4.
On Dec. 12, the ministry announced that it in order to diversify the borrowing instruments and to broaden investor base, it would issue euro-denominated and U.S. dollar denominated bonds to resident and non-resident individual investors (natural persons) between Dec. 17 and 21.
However, it later extended the deadline to collect the demand for the securities to Dec. 26.
In another statement issued on Dec. 24, the ministry this time said that upon demand from investors it decided to offer euro- and U.S. dollar-denominated government bonds also to “legal entities.”
The ministry said on Jan. 4, that it had issued foreign currency bonds between Dec. 17 and Dec. 26 and that considering the demand from the investors it would continue to issue those securities.
The demand for the bonds will be collected between Jan. 7 and Feb. 1.
The demand for the securities would be collected through intermediary banks, including private lenders Akbank, Denizbank, QNB Finansbank, TEB, Garanti Bankası, and Yapı Kredi Bankası, as well as the public lenders Halkbank, Vakıf Bank, and Ziraat.
The maturity of the euro- and U.S. dollar-denominated bonds will be one year with annual returns of 2.5 percent and 4 percent, respectively.