The Turkish Treasury has mandated Goldman Sachs, HSBC and Morgan Stanley to sell USD-denominated eurobonds due 2031, the finance ministry said on November 24.
Initial price guidance was set at 6.25% while the final cost expectation declined to 6.10%, Reuters reported. Bankers speculated that Turkey may sell $2.5bn worth of papers.
In October, the Turkish Treasury agreed to pay a 609bp spread over US Treasury papers for 5-year papers worth $2.5bn.
Istanbul Municipality is also in the market, looking to sell $650mn of eurobonds.
On November 17, Global Capital reported that after the US Thanksgiving holiday on November 26, liquidity traditionally dries up like so much overcooked turkey.
Fitch Ratings rates Turkey at BB-/Negative, three notches below investment grade. Moody’s Rating Services rates Turkey at B2/Negative, five notches below investment grade, while Standard & Poor’s has Turkey at B+/Stable, four notches below investment grade.
Turkey's 5-year credit default swaps (CDS) were hovering at 380s on November 24.