Turkish Treasury to sell FX bonds to legal entities

ANKARA

The Finance and Treasury Ministry announced on Dec. 24 that upon demand from investors it decided to offer euro and U.S. dollar-denominated government bonds also to “legal entities.”

The demand from legal entities will be collected between Dec. 25 and Dec. 26, the ministry said in a statement posted on its website.

The Finance and Treasury Ministry initially planned to sell the bonds in question to resident and non-resident individual investors (natural persons) between Dec. 17 and Dec. 21.

It announced the original bond issuance on Dec. 12.

However, in another statement released on Dec. 20, the ministry said that “considering the demand from the investors, the collection period is extended to Dec. 26.

The ministry said that it will issue the euro and U.S. dollar-denominated bonds in order to diversify the borrowing instruments and to broaden investor base.

The maturity of the euro and U.S. dollar-denominated bonds will be one year with annual returns of 2.5 percent and 4 percent, respectively.

On Dec. 20, the ministry issued euro-denominated fixed rent lease certificates through direct sale method. It sold 555 million euros worth of lease certificates which will mature in two years.