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Turkey’s €2 billion eight‑year bond, its second debt raise this year, has a coupon set at 5.15%. The yield priced at 5.2%, tightened from IPTs in the 5.5% area, with the reoffer level at 99.667.
The pricing on the latest issuance is reminiscent of Turkey’s last Euro outing in July, which saw the sovereign borrow €1.5 billion with a 2031 maturity, and a 5.2% yield.
Turkey’s borrowing needs saw the country open its debt coffers in January with a $3.5 billion raise, conducted through a dual-tranche issuance, split between a $2 billion-sized seven-year long bond with a 6.3% coupon, coupled with a $1.5 billion 12-year issuance, carrying a 6.875% coupon.
The sovereign has marked net proceeds for the latest debt raise to fulfil budgetary needs. According to the country’s Ministry of Finance, Turkey plans to raise external financing equivalent to $13 billion in 2026 through bond and lease certificate issuances in international capital markets.
Deutsche Bank, HSBC (B&D), JP Morgan, and Societe Generale have been listed as bookrunners on the latest issuance, which has an expected rating of Ba3 (Stable) by Moody’s and BB- (Positive) by Fitch, in line with sovereign’s own rating.
A listing on the London Stock Exchange’s International Securities Market is expected to follow.
(Writing by Bindu Rai, editing by Seban Scaria)
