Turkey raises $1bn through five-year sukuk

By bne IntelliNews June 2, 2016

Turkey has returned to the sukuk market after two years, raising $1bn through a five-year dollar-denominated sukuk issue.

Turkey’s Treasury offered the five-year lease certificates at mid-swaps plus 290points, and demand for the notes was above $2.5bn, Bloomberg and Reuters reported, citing bankers. The Treasury has not made an official statement yet on the result of the sukuk issue.

The Treasury mandated Emirates NBD, HSBC and Standard Chartered for the sukuk issue, its first since November 2014. Turkey issued its first sukuk, in the amount of $1.5bn, in 2012 and in November 2014 it raised $1bn. This latest issue was a test for international investors’ confidence in the Turkish economy amid a recent cabinet reshuffle which left Deputy PM Mehmet Simsek, a reformer, with a smaller portfolio.

This year the Treasury plans to borrow up to $4.5bn from the issue of Eurobonds, yen-dominated bonds and lease certificates on the international markets and it has already raised $3bn.

Related Articles

Professor says climate change putting Turkey at risk of becoming a “disease-prone desert”

Turkey is at risk of becoming a “disease-prone desert” with water resources and forests disappearing, Hurriyet Daily News reported Professor Mikdat Kadioglu from Istanbul Technical University’s ... more

Turkey’s lira and shares start moving sideways as significance of early elections is debated

The strongly positive initial reaction given by markets to April 18’s surprise announcement of snap elections in ... more

Turkish lira’s chronic weakness credit negative for Turkey’s sovereign rating says Moody’s

The chronic weakness of the Turkish lira (TRY) is credit negative for Turkey’s sovereign debt rating and poses ... more

Dismiss