Turkey's Treasury holds auctions to borrow over $2B

By Muhammed Ali Gurtas

ANKARA (AA) - Turkish Treasury borrowed a total of 8.51 billion Turkish liras ($2.23 billion) from domestic markets, according to an official statement on Monday.

The first auction was held for 10-month zero coupon treasury bills (new issuance), which amounted to 969 million Turkish liras ($254.43 million), the Undersecretariat of Treasury announced.

The treasury bills will be settled on Wednesday and mature on Dec. 12, 2018, while the total tender was 1.42 billion Turkish liras ($374.42 million) with a 68 percent accepted/tendered rate.

The interest rate of the 301-day treasury bills was accepted at a 10.95 percent term rate, with annual simple and compound interest rates of 13.25 and 13.39 percent, respectively.

At Monday's second auction, the Treasury borrowed 4.96 billion Turkish liras ($1.3 billion) by issuing 5-year fixed coupon bonds (semiannually, re-open, second issue), which will be settled on Wednesday and mature on Jan. 18, 2023.

According to the statement, the total tender for the bonds was 7.95 billion Turkish liras ($2.08 billion), with a 62.4 percent accepted/tendered rate.

The undersecretariat said the term rate of 1,799-day government bonds was accepted at 6.05 percent, while annual simple and compound interest rates were 12.11 and 12.47 percent, respectively.

At the last auction on Monday, the Treasury issued 10-year CPI indexed government bonds (semiannually, re-open, second issue), which amounted to 2.57 billion Turkish liras ($676.38 million). The bonds will be settled on Wednesday and mature on Jan. 12, 2028.

The total tender for the bonds was 3.65 billion Turkish liras ($960.21 million) with a 70.4 percent accepted/tendered rate.

The Treasury said the interest rate of the 3,619-day government bonds was accepted at a 1.47 percent term rate, with annual simple and compound interest rates of 2.94 and 2.96 percent, respectively.