Demand for Turkish bonds more than 3 times issue size

ISTANBUL - Anadolu Agency

International investors’ demand for a new Turkish bond issue was more than triple its actual size, said Turkey's Treasury and Finance Ministry on Friday.

"The offering attracted an orderbook more than three times the actual issue size from more than 200 accounts," the ministry said in a statement.
Three international lenders -- BNP Paribas, Deutsche Bank, and JP Morgan -- were authorized to issue euro-denominated Turkish bonds on Thursday due in March 2025, as part of the 2019 external borrowing program.

The transaction was finalized with a nominal amount of ?1.25 billion ($1.42 billion), according to the statement.

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

The largest national share of the bonds was sold to investors from the U.K. -- 47 percent -- followed by the U.S. with 21 percent, Germany with 6 percent, Switzerland with 5 percent, various other European countries with 12 percent, Turkey with 6 percent, and other regions with 3 percent.

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