Turkish Treasury borrows $2.15B through auctions


The Turkish Treasury announced that it borrowed 12.31 billion Turkish liras ($2.15 billion) from domestic markets on July 8.

The Treasury and Finance Ministry said the first auction was held for 14-month zero coupon bonds (first issuance) totaling 9.73 billion Turkish liras ($1.7 billion).

The total tender for the bonds was 12.7 billion Turkish liras ($2.2 billion) with a 76.4% accepted/tendered rate.

The government bonds will be settled on Wednesday and mature on September 16, 2020, while the interest rate of the 434-day bonds was accepted at a 25.02% term rate.

In the second auction on Monday, the Treasury borrowed nearly 2.59 billion Turkish liras ($452.3 million) by issuing five-year CPI-indexed government bonds (semiannually, new issuance) to be settled on Wednesday and mature on June 5, 2024.

The total tender for the bonds was 3.34 billion Turkish liras ($582.9 million), with a 77.6% accepted/tendered rate.

The ministry said the term rate of the 1,792-day bonds was accepted at 2.07%, while the annual simple and compound interest rates were 4.13% and 4.17%, respectively.

According to the ministry’s borrowing strategy, the Treasury projected to hold 14 bond-auctions and a direct sale of lease certificate in the July-September period to borrow some 36.5 billion Turkish liras ($6.3 billion) from domestic markets.

Hurriyet Daily News


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