Turkey will seek to raise TRY1.9bn (€564mn) in one domestic debt auction in October, the Treasury said on September 30 as it published its borrowing programme for the three months to December.
The issuance plan for October is sharply down from the TRY12.4bn the Treasury raised in eight domestic auctions in September. Stong demand helped bring yields below market expectations despite concerns over Moody’s rating downgrade.
The Treasury will offer for sale five-year fixed-coupon bonds (re-open) at its single auction next month to be held on October 25.
Debt redemption in October is seen at TRY2.1bn, with the heftiest repayment scheduled for October 26, when the Treasury will redeem TRY1.1bn of debt (TRY845mn to the market).
Domestic borrowing for November is planned at TRY10bn through four auctions, versus TRY10.6bn debt redemption. In December, the Treasury plans to borrow TRY5.1bn via two domestic auctions, while debt redemption is projected at TRY5.3bn.
Turkish Treasury completed 2015 with a successful borrowing performance and has so far this year faced no concrete problems in domestic borrowing. The main risk perception for Turkey is actually over the private sector’s foreign borrowing ability. Yet, the private sector has also not faced a significant problem yet.
The Treasury completed 2015 with a total borrowing of TRY97.9bn against debt redemption of TRY131.3bn. For this year, the Treasury will redeem TRY120.4bn debt, including TRY94bn domestic and TRY26.5bn external debt redemption. It plans to borrow TRY79.9bn from the domestic debt market, to issue $4.5bn worth of debt on the foreign market and to obtain $5.5bn in loans from international financial institutions. It will also seek to raise TRY24.3bn from privatisation deals, the Treasury announced on January 29.
|Turkish Treasury's Domestic Borrowing Programme|
|25-Oct||5-year / 1,792 days||re-open||fixed-coupon|
|Planned Borrowing (TRY bn)|
This year's growth in the profits of Turkish banks is expected to be between 15% and 20%, Huseyin Aydin, head of The Banks Association of Turkey (TBB), told media on August 8. Turkish lenders’ ... more
China is to finance as much as 88% of the $1.5-2bn project for the electrification of a 1,000km high-speed rail route connecting the Iranian capital of Tehran and second city Mashhad, Iran Labour ... more
Azerbaijan's central bank has kept its key rate unchanged at 15% following its monetary policy meeting on August 1, the regulator reported. The justification for its decision, it said, is ... more