Turkish Treasury mandates banks for 10-year Eurobond issue.

By bne IntelliNews January 22, 2014

As part of its 2014 external borrowing program, Turkey’s Treasury has mandated Citigroup, HSBC and Morgan Stanley for the issuance of a Dollar denominated bond due 2024. 

The Treasury did not provide other details but bankers told Reuters on Wednesday that initial price guidance for Turkish Treasury's 10-year dollar-denominated Eurobond is at around 6%. This issue will be a test for foreign investors’ appetite for Turkish assets and investors’ confidence in the Turkish economy.

The Treasury plans to borrow USD 6bn from international markets this year through Eurobond, Samurai and sukuk bond issues.

2013 External Borrowing
Issue type Issue date Maturity Currency Amount (USD) Coupon (%) Rate of Return (spread) bp
Global USD Jan-13 2023 USD 1.5bn 3.250 UST+160bp
Private placement Feb-13 2033 JPY 202mn 2.680 Yen Swap+89bp
Global USD Apr-13 2043 USD 1.5bn 4.875 UST+200.9bp
Global USD Nov-13 2021 USD 1.69bn 4.350 MS+272bp
Lease Certificate Issuance
  Issue date Maturity Currency Amount (USD) Yield Rate of Return (spread) bp
  Oct-13 2018 USD 1.25bn 4.557 MS+300bp
Total     USD 6.139bn    
Source: Treasury- Public Debt Management Report/Dec 2013    

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