Istanbul Metropolitan Municipality (IBB) has sold $715mn of green eurobonds (XS2730249997) due 2028 at a coupon rate of 10.50% (priced at 100), the municipality said on November 30.
Bank of America (New York/BAC), Emirates NBD Capital Limited, ING Bank (Amsterdam/INGA), JPMorgan (New York/JPM) and Societe Generale (Paris/GLE) acted as intermediaries in the deal.
The proceeds from the deal will be used to finance clean transportation investments, including metro line constructions, and procuring fully electric or zero-emission vehicles for public transportation.
Istanbul Municipality currently has a total of nine metro line projects under construction.
The municipality has three outstanding eurobonds. In ratings, it has a B/Stable (in line with Turkey’s sovereign rating and five notches below investment grade) from Fitch Ratings and a B3/Stable (six notches below investment grade in line with Turkey’s sovereign rating) from Moody’s Investors Service.
| Istanbul Municipality's outstanding eurobonds | |||||
| Issuer | ISIN | Coupon | Volume (mn) | Issuance | Maturity |
| Istanbul Municipality (IBB) | XS2010029234 | 6.375% | $580 | Dec 1, 2020 | Dec 9, 2025 |
| Istanbul Municipality (IBB) | XS2468421248 | 10.75% | $305 | Apr 5, 2022 | Apr 12, 2027 |
| Istanbul Municipality (IBB) | XS2730249997 | 10.50% | 715 | Nov 29, 2023 | Dec 6, 2028 |
Table: Istanbul Municipality outstanding eurobonds.
Istanbul Municipality’s external debt stock stood at $3bn at end-June.
Istanbul hosts a population of 16mn officially registered residents, but the real population is thought to be above 20mn.
About 95% of Istanbul's total debt is in foreign currency and unhedged, exposing it to significant FX risk and therefore an increase in its total debt on significant FX volatility.
In May, the municipality obtained a €150mn six-year loan with a grace period of two years from ING Bank (Amsterdam/INGA).
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
Kazakhstan’s Freedom fintech sets out to emulate and exceed Revolut in Europe
Freedom Holding Corp (Nasdaq: FRHC) is positioning itself to expand deeper into Europe’s financial services market with plans to launch a digital bank in France, backed by a €500mn ($572mn) ... more
Fintech Freedom Holding aims to make France key entry point into EU with €500mn investment
A French banking licence would open the way to a new phase in the international expansion of Nasdaq-listed fintech group Freedom Holding Corp. That’s the expectation of Freedom, a company ... more
Iran's Araghchi arrives in Turkey for talks on US military build-up as Ankara looks to act as mediator
Iranian Foreign Minister Abbas Araghchi arrived in Istanbul on January 30 for meetings with Turkish officials to discuss regional issues amid what he described as serious challenges posed by US ... more