Turkish Treasury borrows $863M through auctions

Treasury and Finance Ministry holds two auctions for borrowing from domestic markets

By Aysu Bicer

ANKARA (AA) - The Turkish Treasury borrowed 6.1 billion Turkish liras (nearly $863 million) from domestic markets on Monday, according to an official statement.

The Treasury and Finance Ministry announced that some 2.5 billion Turkish liras (about $353 million) fixed coupon bond -- semiannually, re-open -- was sold in the first auction.

The Treasury bill will be settled on Wednesday and mature on Sept. 9, 2021. The total tender amounted to 4.8 billion Turkish liras ($679 million) with a 53.2% accepted/tendered rate.

The Treasury said the term rate of 497-day government bonds was accepted at 4.36%, while the annual simple and compound interest rates were 8.71% and 8.90%, respectively.

In the second auction on Monday, the Treasury issued seven-year floating rate note bonds -- semiannually, new issuance -- totaling 3.6 billion Turkish liras (nearly $509 million).

The bonds will be settled on Wednesday with a maturity date of May 5, 2027.

According to the ministry, the total tender in the second auction amounted to 8.7 billion Turkish liras ($1.2 billion), with a 40.9% accepted/tendered rate.

The term rate of 2,548-day government bonds was accepted at 4.90% of the periodic interest rate.

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