Turkish Treasury borrows $2 bln via 10-year dollar bond

ANKARA

The Turkish Treasury has borrowed $2 billion through a U.S. dollar-denominated bond issue due April 2029.

The offering attracted an orderbook of more than two times the actual issue size from more than 200 accounts, the Treasury and Finance Ministry said in a statement on Jan. 10.

Some 40 percent of the bonds have been sold to investors in the U.S., 27 percent in Turkey, 20 percent in the U.K., 8 percent in other Europe, and 5 percent in other regions, according to the statement.

The bond has a coupon rate of 7.625 percent and a yield to investor of 7.68 percent.

“The total amount of the U.S. dollar bond issuance was converted into an equivalent euro liability. As a result of this swap transaction, the total euro funding cost of the bond issuance was realized as 4.965 percent,” the statement added.

The proceeds from the bond issue will be transferred to Treasury accounts on Jan 16.

With this transaction, the amount of funds that have been raised from the international capital markets as part of the $8 billion worth of 2018 Eurobond issuance program has reached $2 billion, the ministry said.