Treasury raised $1.75 billion in bond issue

ANKARA

The Treasury has borrowed a total of $1.75 billion via a U.S. dollar-denominated bond issue, the Finance Ministry has said.

The ministry on July 9 mandated BNP Paribas, Citi, J.P. Morgan and Standard Chartered for the bond issue due 2032.

The offering attracted an orderbook of close to 4 times the actual issue size from approximately 170 accounts, the ministry said in a statement.

Some 39 percent of the issue has been sold to investors in the U.S., 39 percent in the U.K., 9 percent in other European countries, 6 percent in the Middle East, 4 percent in Türkiye and 3 percent in Asia and other countries, it detailed.

The eight-year bond has a coupon rate of 7.13 percent and a yield to investors of 7.3 percent.

With this transaction, the amount of funds that have been raised from the international capital markets in 2024 has reached a total of approximately $7 billion.

“While our country's access to external resources increases, financing costs decrease,” Finance Minister Mehmet Şimşek wrote on X, commenting on the results of the bond issuance.

The yield difference with U.S. bonds was at its lowest level in 4.5 years in the issue, Şimşek added.

The spread in the latest issue was UST plus 304.5 bps, whereas it was UST plus 371.3 bps in the U.S. dollar denominated bond issue in February this year due 2034.

“The positive divergence of Türkiye's risk premium from similar developing countries in the last year is the result of increased predictability with the policies we implemented,” Şimşek said.