Turkish Treasury borrows $966M through auctions

By Muhammed Ali Gurtas

ANKARA (AA) - The Turkish Treasury borrowed some 5.6 billion Turkish liras ($966 million) from domestic markets, according to an official statement Tuesday.

The Treasury and Finance Ministry said the first auction was held for 2-year fixed coupon bonds (semiannually, re-open, third issue) which amounted to 3.52 billion Turkish liras ($606 million).

The total tender for the bonds, which will be settled on Wednesday and mature on April 21, 2021, was 4.36 billion Turkish liras ($752 million) with a 80.7% accepted/tendered rate.

The term rate of the 679-day bonds was accepted at a 10.83% term rate, as the annual simple and compound interest rates were 21.66% and 22.83%, respectively.

The Treasury borrowed nearly 2.1 billion Turkish liras ($360 million) in the second auction by issuing six-year floating rate notes (semiannually, re-open, sixth issue) to be settled on Wednesday and mature on August 6, 2025.

The total tender for the bonds was 2.61 billion Turkish liras ($450 million), with a 80.1% accepted/tendered rate.

The ministry said the term rate of 2,247-day bonds was accepted at 9.95%, while the annual simple and compound interest rates were 19.90% and 20.89%, respectively.

On Monday, the Treasury also hold two auctions to borrow some 7.4 billion Turkish liras ($1.3 billion) from domestic markets.