Treasury raises 2 billion euros with bond issue

ANKARA

The Treasury has announced it raised a total of 2 billion euros through a euro-denominated bond issue, bringing the total borrowing in international markets this year to $5.2 billion.

Earlier this week, the Treasury mandated Deutsche Bank, HSBC, JP Morgan and Societe Generale for the bond due 2030.

“We successfully completed our highest amount of eurobond issuance in our country's history,” Finance Minister Mehmet Şimşek wrote on X.

The spread of the first eurobond issuance after three years was at its lowest level since 2017, according to the minister.

“Our transaction was the first eurobond issuance this year other than the issuances of countries with an investment grade rating. This successful issuance is a clear indication of international investors' trust in our country and their belief in our program,” he said.

The proceeds from the bond will enter the Treasury’s coffers on March 21.

The 6-year bond has a coupon rate of 5.875 percent and a yield to investor of 6.125 percent, the Finance Ministry said in a statement on March 15.

The offering attracted an orderbook of more than 5 times the actual issue size from nearly 300 accounts, according to the ministry.

Some 42 percent of the issue was sold to investors in the U.K. and Ireland, 21 percent in other European countries, 15 percent in the U.S., 13 percent in the Middle East, 5 percent in Türkiye and 4 percent in other countries, the statement detailed.

With this transaction, the amount of funds that have been raised from the international capital markets in 2024 has reached a total of approximately $5.2 billion, said the ministry.

Last month, the Treasury issued a 10-year dollar-denominated bond.

Demand was also strong for the bond, attracting an orderbook of more than three times the actual issue size.

The transaction for the bond due in 2024 was finalized with a nominal amount of $3 billion.

The 10-year bond has a coupon rate of 7.625 percent and a yield to investors of 7.875 percent.