International demand for new Turkish bond issue more than tripled in actual size, says Treasury and Finance Ministry
Turkey’s U.S. dollar-denominated bond issuance has reached a record international demand of $4 billion, the Treasury and Finance Ministry said on Friday.
“The issue has been the first dual-tranche deal from Republic of Turkey in international capital markets since 2007,” the ministry said in a statement.
The ministry has authorized Citi, Deutsche Bank, JP Morgan and Societe Generale to issue the bond due in 2025 and 2030.
“The transaction was finalized with a nominal amount of $4 billion,” it said, adding that the proceeds of the issuance would be transferred to the treasury on Feb. 13, 2020.
International demand over 200 investors for a new Turkish bond issue more than tripled its actual size, it noted.
While the five-year bond has a coupon rate of 4.25%, and its yield rate for investors is 4.45%, the 10-year bond’s coupon rate was 5.25% with a yield rate of 5.45%.
The largest national share of the bonds, 51%, was sold to investors from the U.K., the U.S. with 18%, other European countries with 14%, Turkey with 10% and other regions with 7%.
“With this transaction, the amount of funds raised from international capital markets in 2020 stands at $4 billion, the ministry added.