Demand for Turkish bonds on int'l capital markets soars

By Tuba Sahin

ANKARA (AA) - The total size of the orderbook for dollar-denominated Turkish bonds the Treasury issued on Wednesday has been the highest of all the republic issuances in the international capital markets.

According to a statement from Turkey's Treasury and Finance Ministry, international demand for the new Turkish bond offering was $15 billion, nearly five times the bonds’ actual issue size.

The ministry on Tuesday mandated Citi, Goldman Sachs, and JP Morgan for a dollar-denominated, dual-tranche bond due 2026 and 2031, the statement said.

The transaction was finalized with a nominal amount of $3.5 billion.

The proceeds of the issue will be transferred to the Treasury accounts on Jan. 26.

The five-year bond has a coupon rate of 4.75% and a yield to investors of 4.90% and the 10-year bond has a coupon rate of 5.875% and a yield to investors of 5.95%.

Some 35% of the bonds have been sold to investors in the UK, 33% in the US, 16% in other European countries, 10% in Turkey, and 6% in other countries, it added.