Turkey Wealth Fund suspends debut Eurobond sale

Turkey’s sovereign wealth fund suspended plans to sell Eurobonds, BloombergHT television reported on Tuesday.

The sale of the five-year debt has been postponed, BloombergHT said. It did not provide a reason for the delay.

The Turkey Wealth Fund had mandated banks including HSBC, the Industrial Commercial Bank of China and Citigroup for the debut Eurobond sale.

The sale would most likely take place this year, but the exact timing and size of the transaction would depend on market conditions, Bloomberg reported late last month.

The Turkey Wealth Fund is looking to raise money as part of a government plan to make it a centrepiece of the country’s economic growth strategy through investments in strategic domestic industries. The fund has already bought a controlling interest in Turkcell, Turkey’s biggest mobile phone operator, a 10 percent stake in the Istanbul Stock Exchange and is helping to pay for the construction of a finance centre in Istanbul.

The fund is chaired by President Recep Tayyip Erdoğan. It also controls companies including Turkey’s biggest state-run banks and Turkish Airlines. The government has used the banks to flood the economy with cheap lending this year to help stimulate economic recovery.