Istanbul-listed TSKB sells $300mn of 5-year green eurobonds at 9.375% coupon

By Akin Nazli in Belgrade September 21, 2023

Industrial Development Bank of Turkey (TSKB) has sold $300mn of sustainable eurobonds (XS2678232781) due 2028 at a coupon rate of 9.375% (a spread of 487bp over US Treasuries) and a yield of 9.50%, the lender said on September 20.

Bank ABC (Arab Banking Corporation/Bahrain/ABC) International Bank plc, BNP Paribas (Paris/BNP), Citibank (Citigroup/New York/C), Commerzbank (Frankfurt/CBK), ING Bank (Amsterdam/INGA), SMBC (Sumitomo Mitsui Banking Corporation/Tokyo/8316) Nikko, Standard Chartered Bank (London/STAN) and Morgan Stanley (New York/MS) acted as intermediaries in the deal.

In 2021, TSKB sold $350mn of 5-year sustainable eurobonds (XS2281369301) at a coupon rate of 5.875% (a spread of 539bp over US Treasuries).
 

TSKB's outstanding eurobonds
Issuer ISIN Coupon Volume (mn) Issuance Maturity
TSKB (TSKB) XS2100270508 6.00% 400 Jan 15, 2020 Jan 22, 2025
TSKB (TSKB) XS2281369301 5.875% $350 Jan 8, 2021 Jan 14, 2026
TSKB (TSKB) (subordinated) XS1584113184 7.625% $300 RECALLED Mar 29, 2027(/22)
TSKB (TSKB) XS2678232781 9.375% 300 Sep 19, 2023 Oct 19, 2028

 

Table: TSKB's outstanding eurobonds.

In line with local peers, TSKB, the 12th largest bank in Turkey with Turkish lira (TRY) 147bn ($5bn) of total assets at end-June, has a B-/Negative (one notch below Turkey’s sovereign rating and six notches below investment grade) from Fitch Ratings and a B3/Stable (six notches below investment grade in line with Turkey’s sovereign rating) from Moody’s Investors Service.

On September 8, Fitch updated Turkey’s sovereign outlook to stable. Updates for corporate outlooks will follow soon.

Isbank (ISCTR) Group companies hold a 51% stake in TSKB while government-run Vakifbank (VAKBN) holds 8%. A stake of 39% is listed on Borsa Istanbul.

On September 13, Yapi Kredi Bank (YKBNK), a unit of Turkish conglomerate Koc Holding (KCHOL), sold $500mn of sustainable eurobonds (XS2445343689) due 2028 at a coupon rate of 9.25% (a spread of 486bp over US Treasuries) and a yield of 9.25%.

On September 12, Vakifbank sold $750mn of sustainable eurobonds (XS2677517497) due 2028 at a coupon rate of 9% (a spread of 464bp over US Treasuries) and a yield of 9.125%.

Turkey’s five-year credit default swaps (CDS) remain below the 400 level, while the yield on the Turkish government’s 10-year eurobonds remains below the 9% level.

In May, unnamed sources told Bloomberg that Turkey’s central bank asked some local lenders to buy the country’s dollar bonds to prevent a CDS spike.

Sentiment on the global markets, meanwhile, remains turbulence-free.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Istanbul Municipality sells $715mn five-year green eurobond at 10.50% coupon

Istanbul Metropolitan ... more

Beijing-based AIIB to extend $300mn in loans to Turk Eximbank

Beijing-based Asian ... more

EBRD to extend €100mn loan to ING Turkey

The European Bank for Reconstruction and Development ... more

Follow Us On

Most Read

  1. LONG READ: The boomerang effect: sanctions hurt Europe more than Russia
    6 days ago
  2. Putin's approval rating up to 85% in November, Russians happy with the country's direction
    4 days ago
  3. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  4. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    12 days ago
  5. Former Kazakh leader Nazarbayev confesses to polygamy with Miss Kazakhstan 1999
    2 days ago
  1. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  2. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    12 days ago
  3. Russia overtakes Germany to become fifth biggest economy in the world in GDP on a PPP basis
    4 months ago
  4. Armenia marks new era with French military purchases
    10 days ago
  5. Lavrov confirms Ukraine war peace deal reached last April, but then abandoned
    2 months ago

Reports

SELECT `n`.`nid` AS `id`, `n`.`title`, 'bne IntelliNews' AS authors, 'bne IntelliNews' AS bylines, `wc`.`field_website_callout_value` AS `summary`, `smc`.`field_social_media_callout_value` AS `social`, `pd`.`published_at` AS `date`, `p`.`field_publication__tid` AS `publication_id`, `fm`.`uri` AS `image`, `fspcaption`.`field_story_photo_caption_value` AS `image_credit`, `fspcredit`.`field_story_photo_credit_value` AS `image_author`, `ws`.`field_website_sections_tid` AS `section_id`, `fdfs`.`field_subject_tid` AS `subject_id`, `db`.`body_value` AS `body`, `fm2`.`uri` AS `pdf`, `et`.`field_enable_tracking_value` AS `tracking`, `ht`.`field_head_tags_value` AS `headTags`, `bt`.`field_body_tags_value` AS `bodyTags` FROM `node` AS `n` LEFT JOIN `field_data_field_website_callout` AS `wc` ON wc.entity_id = n.nid LEFT JOIN `field_data_field_social_media_callout` AS `smc` ON smc.entity_id = n.nid LEFT JOIN `publication_date` AS `pd` ON pd.nid = n.nid LEFT JOIN `field_data_field_publication_` AS `p` ON p.entity_id = n.nid LEFT JOIN `field_data_field_story_picture` AS `sp` ON sp.entity_id = n.nid LEFT JOIN `file_managed` AS `fm` ON fm.fid = sp.field_story_picture_fid LEFT JOIN `field_data_field_story_photo_caption` AS `fspcaption` ON fspcaption.entity_id = n.nid LEFT JOIN `field_data_field_story_photo_credit` AS `fspcredit` ON fspcredit.entity_id = n.nid LEFT JOIN `workflow_node` AS `wn` ON wn.nid = n.nid LEFT JOIN `field_data_field_website_sections` AS `ws` ON ws.entity_id = n.nid LEFT JOIN `field_data_field_subject` AS `fdfs` ON fdfs.entity_id = n.nid LEFT JOIN `field_data_body` AS `db` ON db.entity_id = n.nid LEFT JOIN `field_data_field_file` AS `ff` ON ff.entity_id = n.nid LEFT JOIN `file_managed` AS `fm2` ON fm2.fid = ff.field_file_fid LEFT JOIN `field_data_field_enable_tracking` AS `et` ON et.entity_id = n.nid LEFT JOIN `field_data_field_head_tags` AS `ht` ON ht.entity_id = n.nid LEFT JOIN `field_data_field_body_tags` AS `bt` ON bt.entity_id = n.nid WHERE (n.status = 1) AND (n.type = 'article') AND (n.nid = 293647) AND (wn.sid= 3) AND (p.field_publication__tid IN (2465,2851,3184,3159,3266,3264,3270,3265,3267,3268,3269,3171,3168,3185,3170,1346,1345,3180,3175,3254,3249,1207,1208,3181,3231,3177,3186,3178,1003,3187,2975,3204,3198,3188,3202,3196,3250,3189,3160,3161,3312,3313,3173,3314,3315,3167,3259,3257,3263,3258,3260,3261,3262,3174,3316,3165,3192,3163,3282,3190,2811,3256,3317,3162,3318,3191,3297,3182,3179,3166,3319,3376,3320,3172,3255,3169,1008,3203,3197,3321,3252,3164,1307,3322,3183,3220,3176,3201,3323,1327,1020,1006,1009,1013,1014,1018,1005,1328,1010,1011,1002,1012,1311,1330,1017,1016,1019,1004,1001,1334,1335,1336,1015,1337,1338,1339,1340,1341,2496,2501,2517,2529,2506,2505,2524,2513,2526,2537,2489,2490,2520,2536,2488,2532,2500,2515,2503,2493,2527,2523,2510,2525,2498,2499,2528,2507,2487,2511,2521,2502,2491,2519,2497,2492,2514,2495,2509,2512,1629,3358)) LIMIT 1
Dismiss