Turkish Treasury confirms raising EUR 1bn in Eurobond issue.

By bne IntelliNews April 9, 2014

The Treasury said on Wednesday that it raised EUR 1bn in a EUR-denominated Eurobond issue. The Treasury has mandated Deutsche Bank, ING Bank and J.P. Morgan for the issuance. Market sources told Reuters on Tuesday that Turkey borrowed EUR 1bn.

The bond that matures in April 2023 has a coupon of 4.125% and a yield to investor of 4.20%, the Treasury said in a statement on Wednesday. The bond attracted an orderbook of approximately six times the actual issue size from 34 countries, the Treasury detailed. 41% of the bonds have been sold to investors in Germany, 14% in the UK, 26% in other European countries, 15% in Turkey and 4% in other countries, according to the Treasury.

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 6.02bn and over 90% of the 2014 borrowing program has been completed, the Treasury said.

Bond issuances as part of Treasury'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
Feb-14 USD 1.5bn 2045 6.625 6.700 UST+297bp
Apr-14 EUR 1bn 2023 4.125 4.200 UST+256.6bp
*Around USD 1.7 billion, 640 million of which is for pre-financing of 2014 external
borrowing program.

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