Turkish Treasury borrows nearly $566 mln through auctions

ANKARA- Anadolu Agency

The Turkish Treasury borrowed 4.1 billion Turkish liras (nearly $566 million) from the domestic market in two auctions on Aug. 11. 

The Treasury and Finance Ministry announced that some 2.7 billion Turkish liras (around $372 million) in fixed coupon bonds (reopen, fourth issue) were up for auction due to be settled on Wednesday, Aug. 12, and mature on May 4, 2022.

The total tender for the securities was 5.2 billion Turkish liras ($717 million) with a 52.7% accepted/tendered rate.

According to the official statement, the term rate of 630-day government bonds was accepted at 6.79%, while the annual simple and compound interest rates were 13.57% and 14.03%, respectively.

In the second auction, the Treasury issued CPI-indexed government bonds (reopen, third issuance) totaling 1.4 billion Turkish liras (some $193 million).

The government bonds will be settled on Wednesday, with a maturity date of June 18, 2025.

According to the ministry, the total tender in the second auction amounted to 3.6 billion Turkish liras ($497 million), with a 39.1% accepted/tendered rate.

The term rate of 1771-day government bonds was accepted at 0.95%, while the annual simple and compound interest rates were 1.89% and 1.90%, respectively.

Meanwhile, the Treasury issued dollar-denominated government debt securities (GDS) to institutional investors.

With the value date on Aug. 14, 2020 and the maturity date on Aug. 12, 2022, a total of $3 billion denominated fixed coupon rate government bond has been issued.