Turkish Treasury borrows $773.5M through auctions

By Muhammed Ali Gurtas

ANKARA (AA) - The Turkish Treasury borrowed nearly 4.1 billion Turkish liras ($773.5 million) from domestic markets, according to an official statement Tuesday.

The first auction was held for five-year fixed coupon bonds (semiannually, re-open, third issue), which amounted to 1.98 billion Turkish liras (nearly $375 million), the Treasury and Finance Ministry announced.

The government bonds will be settled on Wednesday and mature on June 14, 2023, while the total tender was 3.24 billion Turkish liras ($613 million) with a 61.1-percent accepted/tendered rate.

The interest rate of the 1,771-day bonds was accepted at a 10.50-percent term rate, with annual simple and compound interest rates of 21.00 and 22.10 percent, respectively.

At a second auction on Tuesday, the Treasury borrowed 2.1 billion Turkish liras ($399 million) by issuing 10-year CPI indexed government bonds (semiannually, re-open, second issue), which will be settled on Wednesday and mature on June 28, 2023.

The total tender for the bonds was 3.99 billion Turkish liras ($756 million), with a 52.8 percent accepted/tendered rate.

The ministry said the term rate of 3,612-day bonds was accepted at 1.79 percent, while annual simple and compound interest rates were 3.57 and 3.60 percent, respectively.

The Treasury borrowed also 1.95 billion Turkish liras ($377.7 million) from domestic markets on Monday, via an auction for 10-month, zero-coupon government bonds.

According to the domestic borrowing strategy, the ministry projected 23 billion liras (around $4.7 billion) of domestic borrowing from the market through auctions and from public institutions, with no planned external borrowing in the August-October period.