Turkish Treasury borrows some $480M through auctions

By Gokhan Ergocun

ISTANBUL (AA) - The Turkish Treasury borrowed around 3.75 billion Turkish liras ($478.6 million) from domestic markets on Monday, according to an official statement.

The Treasury and Finance Ministry announced that some 1.62 billion Turkish liras ($206.6 million) in two-year fixed coupon bonds – semiannually, reopen, second issuance – were sold in the first auction.

The Treasury bill will be settled on Wednesday and mature on Nov. 9, 2022. The total tender amounted to 2.88 billion Turkish liras ($367.2 million) with a 56% accepted/tendered rate.

The term rate of 700-day government bonds was accepted at 6.96%, while the annual simple and compound interest rates were 13.92% and 14.40%, respectively.

In the second auction on Monday, the Treasury issued five-year fixed coupon bonds – new issuance – totaling 2.14 billion Turkish liras ($272.9 million).

The bonds will be settled on Wednesday with a maturity date of Oct. 1, 2025.

According to the ministry, the total tender in the second auction amounted to 2.97 billion Turkish liras ($378.7 million), with a 72% accepted/tendered rate.

The term rate of 1,757-day government bonds was accepted at 6.60% of the periodic interest rate, while the annual simple and compound interest rates were 13.21% and 13.64%, respectively.