Turkish Treasury mandates banks for 30-year Eurobond.

By bne IntelliNews February 12, 2014

As part of the 2014 external borrowing program, Bank of America Merrill Lynch, BNP Paribas and Goldman Sachs have been mandated for the issuance of a USD denominated bond due 2045, the Treasury announced on Wednesday.

Initial price for the issue is 6.75 - 6.875%, bankers told Reuters.

Last month, the Treasury borrowed USD 2.5bn in a 10-year Eurobond issue at a yield of 5.85%. The size of the issue marked the highest amount issued in a single transaction by Turkey in international capital markets. 66% of the bonds were sold to investors in the US, 10% in the UK, 12% in other European countries, 10% in Turkey and 2% in other countries. With last month’s bond issue, the amount of funds that were 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 were completed.

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

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
*Around USD 1.7 billion, 640 million of which is for pre-financing of 2014 external
borrowing program.

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