Turkish Treasury confirms borrowing USD 2.5bn through 10-year Eurobond.

By bne IntelliNews January 24, 2014

The Treasury said on Thursday that as part of its 2014 borrowing programme, it borrowed USD 2.5bn in a 10-year Eurobond issue at a yield of 5.85%.

The size of the issue marks the highest amount issued in a single transaction by Turkey in international capital markets, the Treasury said, adding that the bond attracted an orderbook of approximately four times the actual issue size from over 300 accounts in 35 countries.

66% of the bonds have been sold to investors in the US, 10% in the UK, 12% in other European countries, 10% in Turkey and 2% in other countries.

With this transaction, the amount of funds that have been raised from the international capital markets as part of the 2014 borrowing program reached USD 3.14bn and approximately 50% of the 2014 borrowing program has been completed, the Treasury said. The proceeds from the bond issue will be transferred to Treasury accounts on January 29.

Bond issuances as part of Treausry's  2014 borrowing programme
Issue date Currency Size Maturity date Coupon (%) Yield to investor (%) Spread
Nov-13 EUR 1.25bn* 2021 4.350 4.450 MS+272bp
Jan-14 USD 2.5bn 2024 5.750 5.850 UST+299bp
*Around USD 1.7 billion, 640 million of which is for pre-financing of 2014 external
borrowing program.

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