Demand for Turkish bonds more than 3 times issue size

Offering attracted order book of more than 3 times actual issue size of euro-denominated Turkish bond, says Treasury

Demand for Turkish bonds more than 3 times issue size

International demand for a new Turkish bond offering was more than triple the bonds’ actual issue size, said Turkey's Treasury and Finance Ministry on Thursday.

"The offering attracted an order book of more than three times the actual issue size from more than 200 accounts," the ministry said in a statement. 

On Wednesday the ministry authorized three international lenders -- BNP Paribas, HSBC, and ING -- to issue a euro-denominated Turkish bond due in 2026, as part of the 2018 external borrowing program.

The transaction was finalized with a nominal amount of $1.5 billion ($1.7 billion), according to the statement.

The proceeds of the issue will be transferred to the Treasury accounts on Nov. 14.

The bond has a coupon rate of 7.25 percent, and its yield rate for investors is 7.50 percent.

The largest national share of the bonds was sold to investors from the U.K. -- 35 percent.

Britain was followed by the U.S. with 20 percent, Germany and Austria with 14 percent, Nordic countries with 7 percent, France and Switzerland with 5 percent, Benelux with 5 percent, various other European countries with 6 percent, Turkey with 6 percent, and other regions with 2 percent. 

The new transaction brings the number of funds raised from international capital markets this year to nearly $7.7 billion.