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The Republic of Türkiye returned to debt markets this week, raising $2.75 billion through a six-year Regulation S sukuk offering that attracted $6.7 billion in orders.
The benchmark-sized Islamic bond locked in on a 6.70% fixed rate semi-annual coupon, with a 6.75% yield and reoffer price of 99.757. The spread was set at T+260.2bps.
IPTs for the Ijarah offering were in the 7.125% area.
The sukuk has a settlement date of 2 July 2026, with a maturity set for 2 July 2032.
The expected rating for the sukuk is Ba3 / BB- (Moody’s/Fitch), in line with the sovereign’s own rating.
A listing on the International Securities Market of the London Stock Exchange will follow.
The issuance is part of Türkiye’s plan to raise $13 billion in external financing this year through international sale of bond and sukuk.
(Writing by Bindu Rai, editing by Seban Scaria)
