The Capital Markets Board of Turkey (SPK) has approved Istanbul Municipality’s application to sell up to €554mn of eurobonds, the SPK said on October 22 in its weekly bulletin.
Also on October 22, Bloomberg reported that the municipality was in talks with banks to sell at least $500mn of eurobonds.
This month, the Turkish Treasury agreed to pay a 609bp spread over US Treasury papers for 5-year $2.5bn papers and Turkish biscuit and confectionery maker Ulker agreed a 660bp spread for 5-year $650mn papers.
Turkey Wealth Fund (TWF/TVF) failed to move forward to eurobond issuance after facing higher-than-expected demands in spreads at investor meetings.
“Two EM bond issuers [TWF and Ukraine’s Naftogaz] beat hasty retreats from the primary market this week. But despite the challenges the pair faced, bankers and investors believe the market is open for borrowers looking to pick up a bit of funding ahead of what is expected to be a tortuous US election,” Global Capital reported on October 22.
The TWF blamed hostile market conditions for its decision, according to the publication.
The Turkish Treasury's last EUR-denominated eurobond sale took place in January 2019. Subsequently, it swapped its USD-denominated papers into EUR to benefit from lower costs. At least that was the case until the latest auction earlier this month.
Related Articles
Russia’s central bank cuts key rate by 100bp to 17% in cautious move, defies calls for deeper easing
The board of the Central Bank of Russia (CBR) at the policy meeting of September 12 resolved to cut the key interest rate by 100 basis points from 18% to 17%, according to the regulator’s press ... more
Ukraine’s non-performing loan share falls to decade low as banks post steady profits
The share of non-performing loans (NPLs) in Ukraine’s banking sector has fallen to its lowest level in a decade, even as the country’s lenders continue to deliver strong profits despite the ... more
Azerbaijan tightens banking operations on foreign financial sources
Azerbaijan has implemented new restrictions on banking operations involving foreign financial sources, with amendments signed by President Ilham Aliyev targeting unregistered foreign financial ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
23 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
Hungarian economy faces weak growth, slow path to price stability, central bank report shows
2 months ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago