Nov 08 2019

Demand at $2.5 billion Turkey bond sale most since 2015, Treasury says

Turkey sold a nominal $2.5 billion of dollar-denominated five-year bonds to investors to yield 5.7 percent, the Treasury and Finance Ministry said on Thursday.

Demand for the debt, sold via Goldman Sachs, HSBC and JPMorgan, was more than three times supply and the greatest since April 2015, the ministry said in a statement on its website. The yield was equivalent to a spread of 407 basis points above U.S. Treasuries, the narrowest this year.

The sale by Turkey’s government, which comes as the economy recovers from a currency crisis that erupted last year, brings total transactions on international markets during 2019 to about $11.2 billion. Demand for emerging market debt has been bolstered by rate cuts by the Federal Reserve and a lull in a U.S.-China trade war.

More than half of the bonds were sold to investors in Britain and 32 percent to investors in the United States.

The Treasury and Finance Ministry said it had converted proceeds from the sale into euros with a coupon rate of 3.3 percent.

Turkey last sold $2.25 billion of five-year dollar bonds in July to yield 6.45 percent, equivalent to a spread of 470 basis points above U.S. Treasuries.

https://www.hmb.gov.tr/duyuru/6-kasim-2019-tarihli-tahvil-ihracinin-sonucuna-iliskin-basin-duyurusu