Turkish Treasury borrows $1.5B from domestic markets

ANKARA-Anadolu Agency

The Turkish Treasury borrowed 8.85 billion Turkish liras ($1.5 billion) from domestic markets on Dec. 17.

Some 4.7 billion Turkish liras ($798.8 million) in two-year fixed coupon Treasury bills -- semiannually, reopen, third issue -- were sold in the first auction, the Treasury and Finance Ministry announced.

The Treasury bills will be settled on Dec. 18 and mature on Oct. 20, 2021.

The total tender amounted to 6.85 billion Turkish liras ($1.1 billion), with a 68.9 percent accepted/tendered rate.

The Treasury said the term rate of the 672-day Treasury bills was accepted at 5.77 percent, while the annual simple and compound interest rates were 11.55 percent and 11.88 percent, respectively.

In the second auction, the Treasury issued five-year CPI indexed bonds -- semiannually, reopen, second issue -- totaling 2.2 billion Turkish liras ($373.9 million).

The bonds will be settled on Dec. 18 with a maturity date of Nov. 11, 2024.

The total tender in the second auction amounted to 3.25 billion Turkish liras ($552.3 million), with a 68.2 percent accepted/tendered rate.

The term rate of 672-day government bonds was accepted at 1.46 percent, while the annual simple and compound interest rates were 2.92 percent and 2.94 percent, respectively.

The ministry also issued lease certificates worth 1.95 billion Turkish liras ($331.4 million) on Dec. 17.

Certificates will be settled on Dec. 18 with a maturity date of Dec. 15, 2021.

Under the ministry's borrowing strategy, the Treasury projects holding 19 bond-auctions and a direct sale of lease certificates during the December-February period to borrow some 61.6 billion Turkish liras ($10.7 billion) from domestic markets.