Turkish Treasury holds auction to borrow $386M

By Muhammed Ali Gurtas

ANKARA (AA) - The Turkish Treasury borrowed some 2.4 billion Turkish liras ($386 million) from domestic markets, according to an official statement Tuesday.

The auction was held for 5-year CPI indexed government bonds -- semiannually, re-open, fourth issue -- the Treasury and Finance Ministry announced.

The government bonds will be settled on Wednesday and mature on Nov. 8, 2023, while the total tender was 5.87 billion Turkish liras ($946 million) with a 40.8-percent accepted/tendered rate.

The interest rate of the 1,869-day bonds was accepted at a 1.77-percent term rate, with annual simple and compound interest rates of 3.55 and 3.58 percent, respectively.

According to the domestic borrowing strategy, the ministry has projected 21.9 billion liras (around $3.33 billion) of domestic borrowing from the market through auctions and there will be no planned external borrowing in the September-November period.