Turkish Treasury to repay $12.7 billion debt in February-April

Turkish Treasury to repay $12.7 billion debt in February-April

ANKARA
Turkish Treasury to repay $12.7 billion debt in February-April

The Turkish Treasury will repay debts worth 66 billion Turkish Liras (around $12.7 billion) in the February-April period, the Treasury and Finance Ministry announced on Jan. 31.

Including a 7.8 billion lira interest payment, the Treasury will repay 25.3 billion liras ($4.89 billion) of external debts.

In the next three months, 40.7 billion liras of domestic debt redemption is also projected - 56 percent of this amount will be interest payment while the rest will be principal payment.

To borrow 34.3 billion liras from domestic markets, the Treasury has projected to hold nine bond-auctions and a direct sale of lease certificate - no planned external borrowing - in the next three months, according to the ministry’s borrowing strategy.

Last month, the Treasury raised 1.25 billion euros from bonds due March 2025 as part of its 2019 external borrowing program.

International investors’ demand for a new bond issue was more than triple its actual size.

The bond has a coupon rate of 4.625 percent, and its yield rate for investors is 4.75 percent.

With this latest transaction, the amount of funds that has been raised from the international capital markets in 2019 has reached a total of $3.4 billion.

Turkish Treasury, debt management, February, april, 2019