Turkish Treasury borrows $1.67B through auctions

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The Turkish Treasury borrowed 9.68 billion Turkish liras ($1.67 billion) from domestic markets through three auctions on Nov. 12.

Some 5.12 billion Turkish liras ($886.3 million) in 11-month zero coupon Treasury bills (semiannually, reopen, third issue) were sold in the first auction, the Treasury and Finance Ministry announced.

The Treasury bills will be settled on Nov. 13 and mature on Oct., 7, 2020.

The total tender amounted to 8 billion Turkish liras ($1.38 billion), with a 64% accepted/tendered rate.

The Treasury said the term rate of the 329-day Treasury bills was accepted at 11.01%, while the annual simple and compound interest rates were 12.18% and 12.25%, respectively.

In the second auction, the Treasury issued seven-year floating rate coupon bonds (semiannually, new issuance) totaling 2.99 billion Turkish liras ($517.5 million).

The bonds will be settled on Nov. 13 with a maturity date of Nov., 4, 2026.

The total tender in the second auction amounted to 4.5 billion Turkish liras ($778.8 million), with a 72.5% accepted/tendered rate.

The term rate of 2,548-day government bonds was accepted at 7.22%, while the annual simple and compound interest rates were 14.44% and 14.96%, respectively.

In the last auction of the day, six-year fixed coupon bonds (semiannually, reopen, eleventh issue) were sold, totaling 1.57 billion Turkish liras ($271.8 million).

The bonds will also be settled on Wednesday with a maturity date of Feb., 11, 2026.

The third auction’s total tender was 3.97 billion Turkish liras ($687.1 million), with a 39.5% accepted/tendered rate.

The 2,282-day government bonds were accepted at 6.09%, while the annual simple and compound interest rates were 12.17% and 12.54%, respectively.

The Treasury also held two more auctions — two-year and five-year — on Nov. 11 to borrow 9.75 billion Turkish liras ($1.69 billion) from the domestic market.

Under the ministry’s borrowing strategy, the Treasury projects holding 12 bond-auctions and a direct sale of lease certificates this October-December to borrow some 38.9 billion Turkish liras ($6.88 billion) from domestic markets.

Hurriyet Daily News

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