The Turkish Treasury on February 13 sold $2bn worth of 3-year lease certificates with a yield to the investor of 5.80%, it said on February 14 in a written statement.
The initial price guidance for the sukuk bonds (Islamic bonds) due February 2022 fell to 5.9% from 6.125% as demand soared to more than $3.5bn, Reuters reported on February 13, citing unnamed banking sources.
“The offering attracted an orderbook of approximately three times the actual issue size,” according to the statement from the Treasury.
The spread over market rates continued to decline sharply in the latest international sale. It fell to 318bp over the mid-swaps (MP), the lowest level since January 2018. Spreads on Turkey’s eurobond sales reached 497bp in the January 2019 auction. Turkey has raised $5.4bn from the international capital markets in 2019 to date.
Also on February 14, Turkey’s largest telco, Turk Telekom, said in a bourse filing that its high-level management would carry out investor meetings arranged by mandated lenders Bank of America Merrill Lynch, Citi, ING, MUFG and Societe Generale in London, Boston and New York, starting from February 15 to issue $500mn worth of eurobonds with maturities between 5 and 7 years.
Last week, the Capital Markets Board’s (SPK’s) regular weekly bulletin showed that Turk Telekom had been given the green light to issue up to $500mn worth of eurobonds abroad. Also on February 14, Standard & Poor’s said in a written statement that it had affirmed Turk Telekom at BB-/Stable.
“We now expect a stronger Turkish lira against the U.S. dollar at 5.50 in 2019, compared with 6.90 in our previous base case,” the rating agency also said.
Source Intellinews