ISTANBUL: Turkey completed almost all of its planned borrowing for 2014 yesterday, when foreign investors snapped up a €1bn Eurobond issue in a sign of confidence in the country’s economic health after months of political turbulence.
The issue attracted bids for some six times the amount on offer and increased the amount Turkey has raised on international capital markets this year to just over $6bn, the Treasury said in a statement.
Prime Minister Tayyip Erdogan’s government has been dogged since December by a corruption scandal he has cast as a plot orchestrated by his political enemies to undermine him, one of the biggest challenges of his 11-year rule.
The April 11, 2023, Eurobond carried a coupon of 4.125 percent and a yield to investors of 4.2 percent, the Treasury said. Foreign investors accounted for 85 percent of the issue, most of them in Germany. A Eurobond is a bond issued in a currency other than that of the issuer’s own. The proceeds will be transferred to Treasury accounts on April 11. The Treasury had mandated Deutsche Bank, ING Bank and J.P. Morgan for the issue, maturing on April 11, 2023. Reuters
