Turkey’s largest private lender by assets, Isbank, on January 16 sold $750mn worth of subordinated bonds due January 2030 at a coupon rate of 7.75%, according to a stock exchange filing by the lender.
Basel III-compliant papers are callable at the end of the fifth year.
So far in 2020, three Turkish lenders have sold a combined $1.15bn worth of eurobonds.
Isbank’s sales followed a $750mn placement by a subsidiary, the Industrial Development Bank of Turkey (TSKB).
Major eurobond issues by Turkish issuers | |||||
Issuer | ISIN | Coupon | Volume (USD mn) | End of placement | Maturity |
Isbank | XS2106022754 | 7.75% | 750 | Jan 16, 2020 | Jan 22, 2030 |
TSKB | 6.00% | 400 | Jan 15, 2020 | Jan 22, 2025 | |
Yapi Kredi Bank | 6.05% | 50 | Jan 10, 2020 | Dec 10, 2024 | |
Fibabank | XS2096028571 | Floating | 30 | Dec 31, 2019 | Dec 31, 2029 |
Turkcell | XS1298711729 | 5.75% | 10 | Dec 20, 2019 | Oct 15, 2025 |
Garanti Bank | XS2094608580 | 5.25% | 50 | Dec 12, 2019 | Dec 20, 2024 |
Mersin Port | XS2071397850 | 5.375% | 600 | Nov 7, 2019 | Nov 15, 2014 |
Treasury | US900123CW86 | 5.60% | 2500 | Nov 6, 2019 | Nov 14, 2024 |
Isbank | XS2041003901 | 8.10% | 50 | Aug 7, 2019 | Dec 3, 2029 |
Aktifbank | XS2034164074 | 6.50% | 40 | Jul 31, 2019 | Aug 1, 2029 |
Kuveyt Turk Bank | XS2028862998 | 9.13% | 200 | Jul 2, 2019 | Perpetual |
Treasury | US900123CV04 | 6.35% | 2250 | Jul 10, 2019 | Aug 10, 2024 |
Vakifbank | 150 | Jun 25, 2019 | Jul 16, 1905 | ||
Vakifbank | XS1970705528 | 8.125% | 600 | Mar 21, 2019 | Mar 28, 2024 |
Sisecam | XS1961010987 | 6.95% | 700 | Mar 20, 2019 | Mar 14, 2026 |
Treasury | US900123CT57 | 7.625% | 1000 | Mar 26, 2019 | Apr 26, 2029 |
Yapi Kredi Bank | XS1958649854 | 8.25% | 500 | Mar 7, 2019 | Oct 15, 2024 |
Koc Holding | XS1961766596 | 6.50% | 750 | Mar 5, 2019 | Mar 11, 2025 |
QNB Finansbank | XS1959391019 | 6.875% | 500 | Feb 28, 2019 | Sep 7, 2024 |
Yapi Kredi Bank | XS1957348441 | FRN | 321.6 | Feb 25, 2019 | Nov 25, 2027 |
Turk Telekom | XS1955059420 | 6.875% | 500 | Feb 21, 2019 | Feb 28, 2025 |
Treasury (sukuk) | XS1816199373 | 5.80% | 2000 | Feb 21, 2019 | Feb 21, 2022 |
Treasury | XS1843443356 | 4.63% | EUR1.25bn | Jan 31, 2019 | Mar 31, 2025 |
Eximbank | XS1917720911 | 8.25% | 500 | Jan 24, 2019 | Jan 24, 2024 |
Treasury | US900123CT57 | 7.625% | 2000 | Jan 16, 2019 | Apr 26, 2029 |
source: cbonds, intellinews |
Market players are awaiting a eurobond sale by the Turkish Treasury. The Treasury usually holds one in the first month of the new year.
Awaited eurobond auctions of major Turkish issuers | |||||
Up to USDbn | Sold | Type | |||
Jan-2020 | Treasury | Market expectation | - | - | |
Jan 20, 2020 | Garanti | SPK Application | 6 | - | debt instrument abroad |
Sep 12, 2019 | Vakifbank | SPK Approval | 5 | - | |
Dec 27, 2019 | Isbank | SPK Application | 5 | Jan 16, 2020 | |
Dec 16, 2019 | Akbank | Board authorisation | 2 | - | subordinated |
Nov-2019 | Istanbul Municipality | Treasury Application | 0.5 | - | |
Nov 18, 2019 | Yapi Kredi | SPK Approval | €0.5 | - | mortgage-backed |
Nov 8, 2019 | Vakifbank | SPK Approval | €1 | - | mortgage-backed |
Oct 18, 2019 | Turkish Airlines | Mandated Lenders | - | - | bond or ETTC |
Oct 10, 2019 | TWF | Media report | - | - |
In a January 16 article entitled “Slam dunk week for CEEMEA bonds as NIPs barely on show”, Global Capital said: “It has been an extraordinary week in the CEEMEA new issue market where barely any deal was printed without a huge order book and a flat or negative new issue premium. Though a slew of expected sovereigns have so far stayed away, bankers said they expected them to step up to the plate soon.”
The sheer uniformity of tight printing and clear heavy demand across the board were seen in all eight benchmark bonds printed last week in CEEMEA—from First Abu Dhabi Bank, Veon, Bahrain Mumtalakat, Prosus, TSKB, Isbank, Qatar National Bank and Phosagro, the publication noted.
This week, Saudi Arabia and Romania have benefited from the ‘dollar rains’. Ukraine is also in the market.
Turkey’s 5-year credit default swaps (CDS) fell below 250bp on January 15 and have remained in the 240s since then. A record level of 566bp was seen in September 2018 after the lira crisis.
Fitch Ratings rates Turkey at BB-/Stable, three notches below investment grade. Moody’s Rating Services rates Turkey at B1/Negative, four notches below investment grade, while Standard & Poor’s has Turkey at B+/Stable, also four notches below investment grade.
The next scheduled eurobond redemption by a Turkish issuer is scheduled for this week—on January 24, 2020 private lender Akbank will repay $500mn (XS1111101314).
Upcoming eurobond redemptions by major Turkish issuers | ||||||
Issuer | ISIN | Coupon | Volume (mn) | Issuance | Maturity | Refinanced |
Akbank | XS1111101314 | 4.000% | $500 | Jan 23, 2015 | Jan 24, 2020 | - |
Halkbank | XS0882347072 | 3.875% | $750 | Feb 5, 2013 | Feb 5, 2020 | - |
Vakifbank | XS1175854923 | 6.950% | $500 | Feb 2, 2015 | Feb 5, 2020 | Early, 2025 |
TSKB | XS1219733752 | 5.125% | $350 | Apr 22, 2015 | Apr 22, 2020 | January 16, 2020 |
Koc Holding | US49989AAA79 | 3.500% | $750 | Apr 24, 2013 | Apr 24, 2020 | Mar 5, 2019 |
Isbank | XS1121459074 | 5.000% | $750 | Oct 30, 2014 | Apr 30, 2020 | Jan 16, 2020 |
Yasar Holding | XS1132450427 | 8.875% | $172 | Nov 6, 2014 | May 6, 2020 | - |
Sisecam | US90016AAA88 | 4.250% | $300 | May 9, 2013 | May 9, 2020 | Mar 20, 2019 |
Treasury | XS0503454166 | 5.125% | €2,000 | Jul 2, 1905 | May 18, 2020 | - |
Treasury | US900123AX87 | 7.000% | $2,000 | Jun 2, 2005 | Jun 5, 2020 | - |
Mersin Port | XS0957598070 | 5.875% | $450 | Aug 12, 2013 | Aug 12, 2020 | Nov 7, 2019 |
Treasury | JP579200AHQ2 | 1.810% | JPY60bn | Dec 1, 2017 | Dec 7, 2020 | - |
Treasury | JP579200ABF8 | 1.870% | JPY180bn | Mar 11, 2011 | Mar 18, 2021 | - |
Treasury | US900123BH29 | 5.625% | $2,000 | Jul 2, 1905 | Mar 30, 2021 | - |
Treasury | XS1303467077 | 4.251% | $1,000 | Jun 1, 2016 | Jun 8, 2021 | - |