Jan 09 2018

Turkey offers 10-year dollar bonds in first sale for year

Turkey plans to issue 10-year dollar-denominated bonds for the first time in a year as it seeks to rollover its debt and finance government spending.

The transaction will be settled on Jan. 17, the Treasury in Ankara said in a statement on Tuesday.

Citi Group, Deutsche Bank and HSBC Holdings Plc are acting as bookrunners for the deal. Turkey is rated Ba1 with a negative outlook by Moody’s Investors Service and BB+ stable by Fitch Ratings.

The bonds will likely be sold at a yield of about 5.4 percent, Tim Ash, senior emerging markets strategist for BlueBay Asset Management in London, said in an e-mailed note to clients. Turkey has averaged borrowing of $6.5 billion in the Eurobond market in recent years, but is likely to sell a similar amount to last year, when it issued close to $10 billion, due to the country’s external financing needs, Ash said.

Turkey last sold dollar-denominated 10-year bonds a year ago, raising $3.25 billion in January 2017. The debt was trading at around 5.1 percent on Tuesday.