Turkish Treasury mandates banks for dollar eurobond issue

IFR said the pricing of the 5-year tranche was in the 5.25% area


ISTANBUL- The Turkish Treasury said on Tuesday it had mandated Citi, Goldman Sachs and JP Morgan for a dollar-denominated eurobond issue with two tranches maturing in 2026 and 2031, within the framework of its 2021 foreign financing programme.

IFR said the pricing of the 5-year tranche was in the 5.25% area and pricing of the 10-year tranche was in the 6.25% area.

"The two issues will be finalised with the 5-year around 5% and the 10-year around 6%. With high demand, its possible they may be a bit lower," a bond trader at one bank said.

"Considering the lower interest rate environment globally and the current trend towards orthodox policies, we expect high demand in today's two issues. If it wants, the Treasury could borrow a large amount," the banker said.

Separately, the Turkish Treasury sold a net 1.02 billion lira of a 15-month zero coupon bond at a yield of 15.49% on Tuesday. It also sold a net 2.48 billion lira of a five-year TLREF index bond at a periodical yield of 4.28%.

(Reporting by Nevzat Devranoglu Writing by Daren Butler Editing by Jonathan Spicer and Dominic Evans) ((daren.butler@tr.com; +90-212-350 7053; Reuters Messaging: daren.butler.thomsonreuters.com@reuters.net))

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