Turkey's Treasury raises $1 billion via 2029 bond

Turkey's Treasury raises $1 billion via 2029 bond

ANKARA
Turkeys Treasury raises $1 billion via 2029 bond

The Turkish Treasury borrowed $1 billion through its dollar-denominated April 2029 bond.

The bond has a coupon rate of 7.625 percent and a yield to investors of 7.15 percent.

“The offering attracted an orderbook of approximately 3 times the actual issue size from more than 100 accounts,” the Treasury and Finance Ministry said in a statement on its website yesterday.

The ministry had mandated Goldman Sachs, J.P.Morgan ve Standard Chartered for the reopening of its U.S. dollar denominated bond issue.

Some 39 percent of the bonds were sold to investors in the U.S., 34 percent in the U.K., 17 percent in Turkey, 7 percent in other Europe, and 3 percent in other countries.

“The total amount of the U.S. dollar bond issuance was converted into an equivalent EUR liability. As a result of this swap transaction, EUR denominated coupon rate was realized as 4.859 percent and the EUR equivalent yield to investor was realized as 4.381 percent,” the statement added.

The proceeds of the issue will be transferred to the Treasury’s accounts on March 26.

With this transaction, the amount of funds that have been raised from the international capital markets as part of the $8 billion worth of 2018 Eurobond issuance program has reached $6.4 billion.

Turkish Treasury, bond, Turkish economy