Turkish Treasury borrows $830.5M through auctions

By Gokhan Ergocun

ISTANBUL (AA) - The Turkish Treasury borrowed a total of around 4.67 billion Turkish liras ($830.5 million) from domestic markets on Monday, according to an official statement.

The Treasury and Finance Ministry reported that nearly 3.44 billion Turkish liras ($607.7 million) in 13-month zero coupon government bonds (reopen, second issue) were sold in an auction.

The government bonds will be settled on Wednesday and mature on Sep. 16, 2020. The total tender amounted to 5.3 billion Turkish liras ($936.8 million) with a 64.7% accepted/tendered rate.

The treasury said the term rate of 392-day government bonds was accepted at 16.57%, while the annual simple and compound interest rates were 15.38% and 215.30%, respectively.

In Monday's second auction, the Treasury issued six-year floating rate coupon government bonds (semiannually, re-open, eighth issue) totaling 1.23 billion Turkish liras ($217.4 million).

The bonds will be settled on Wednesday with a maturity date of Aug. 6, 2025.

According to the ministry, the total tender in the second auction amounted to 2.9 billion Turkish liras ($512.6 million), with a 42.3% accepted/tendered rate.

The term rate of 2,177-day government bonds was accepted at 11.50%, while the annual simple and compound interest rates were 22.90% and 24.31%, respectively.

The treasury will hold two more auctions on Tuesday to borrow from the domestic market.

According to the ministry's borrowing strategy, the treasury projects to hold 14 bond-auctions and a direct sale of lease certificates this July-September to borrow some 36.5 billion Turkish liras ($6.3 billion) from domestic markets.