Eurobond issue sees strong demand

ANKARA

Demand was strong for Türkiye’s 10-year dollar-denominated bond, which marked the first Eurobond issuance since the elections last May.

The transaction for the bond due 2024 was finalized with a nominal amount of $3 billion, the Treasury and Finance Ministry said in a statement.

The offering attracted an orderbook of more than 3 times the actual issue size from approximately 300 accounts, according to the statement.

“Some 42 percent of the issue was sold to investors in the U.K. and Ireland, 27 percent in the US, 20 percent in the Middle East, 6 percent in other European countries, 4 percent in Türkiye and 1 percent in other countries,” it detailed.

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

The proceeds of the issue will be transferred to the Treasury accounts on Feb. 15.

The Treasury had mandated BBVA, Citi, Goldman Sachs and Morgan Stanley for the bond issuance.

The government is working hard to improve the investment environment in Türkiye, Vice President Cevdet Yılmaz said on Feb. 10.

“Fund and foreign direct investment inflows into Türkiye will increase this year. We are already seeing signs of this,” Yılmaz said in a speech he delivered at the Türkiye-Kyrgyzstan Business Forum in Ankara.

Türkiye will have the share it deserves from capital inflows into the emerging countries, the vice president added.

In a report earlier this month, Fitch ratings said that higher growth in emerging markets relative to developed markets and the prospect of U.S. Federal Reserve rate cuts later this year are expected to push emerging-market net capital flows to a decade high in 2024.