• 18 Feb

    Turkey frontloads 2019 borrowing with $2 billion sukuk sale


    Turkey continued to frontload its foreign borrowing programme for 2019, selling $2 billion of Islamic bonds.

    The February 2022 debt, also known as lease certificates, will yield an annual 5.8 percent, the Treasury and Finance Ministry said in a statement on its website on Thursday.

    This week’s sale brings Turkey’s total foreign borrowing so far this year to $5.4 billion, two-thirds of its 2019 goal of $8 billion. The government is seeking to diversify its borrowing and sell less debt in the domestic markets after interest rates on lira bonds surged after a currency crisis.

    The lease certificates attracted an order book of approximately three times the issue size from more than 200 accounts, the ministry said. About 47 percent of the debt was sold to investors in the Middle East, 30 percent in Britain, 9 percent in other European countries and 8 percent in the United States, it said.

    The borrowing follows sales of 1.25 billion euros of 2025 Eurobonds on Jan. 31 and $2 billion of 2029 international bonds on Jan. 16.

    Turkey last sold lease certificates in December, borrowing 555 million euros of the debt maturing in December 2020. The sale, upped from a planned 400 million euros, provided 1.55 percent returns payable every six months, the ministry said before the sale

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