Halkbank pushes Turkish bank issuance with dollar bond

By bne IntelliNews January 30, 2013

bne -

Turkey's state-controlled Halkbank sold its second ever dollar-denominated bond, a $750m benchmark 7-year issue, on January 29 at a price of 255 basis points (bp) over mid-swaps, according to unnamed sources cited by newswires.

The rate on the bond corresponds to a 4.04% yield, according to data compiled by Bloomberg. Halkbank's only other dollar issue, a five-year paper due in 2017, sold in July at a yield of 4.875%.

With an original price guidance of 270bp over mid-swaps, pricing apparently tightened during the latest sale, although the bank has yet to confirm the issue, with information offered by unnamed sources. The strong pricing reflects the ongoing emerging market bond rally, as well as recent sentiment on Turkish assets driven by Fitch's upgrade to investment grade for the sovereign in November, and continued speculation that Moody's Investors Service will soon follow suit.

That said, news this week that Moody's is set to remain on pause for the short term at least has helped knock bond prices, the currency and equities in recent days. Concern that improved growth in 2013 could yet worsen the current account deficit - a worry that has seen the central bank suggest it could tighten monetary policy - is also helping to produce volatile trade in Turkish assets.

However, the bigger picture is that the improved outlook on the sovereign has provoked reports of a coming wave of Turkish corporate debt, with banks at the forefront. Halkbank, rated Ba2 by Moody's and BBB- by Fitch, is set to be one of several tapping the bond market this year in dollars and for Eurolira notes, points out Euroweek. Akbank finished a roadshow for its Eurolira deal on January 29.

Related Articles

Turkey approaches day of reckoning on economic reform

Kivanc Dundar in Istanbul -   The unexpected success of President Recep Tayyip Erdogan’s Justice and Development Party (AKP) in this month’s general election should bring much-desired political ... more

Macedonia kept on hold as Balkans edges towards EU goal

Clare Nuttall in Bucharest -   Macedonia’s EU accession progress remains stalled amid the country’s worst political crisis in 14 years, while most countries in the Southeast Europe region have ... more

Turkey and America seen on course for confrontation in Syria war

John Davison of Exaro - Military action by Turkey against Kurdish rebel forces in Syria raises the prospect of a direct clash with the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss