Turkey's Treasury holds auctions to borrow nearly $2.6B

By Muhammed Ali Gurtas

ANKARA

Turkish Treasury borrowed 9.6 billion Turkish liras ($2.58 billion) from domestic markets, according to an official statement Tuesday.

The first auction was held for 10-year fixed coupon bonds (semiannually, re-open, third issue), which amounted to 5.06 billion Turkish liras ($1.36 billion), the Undersecretariat of Treasury announced.

The government bonds will be settled on Wednesday and mature on Aug. 8, 2027, while the total tender was 7.23 billion Turkish liras ($1.94 billion) with a 70 percent accepted/tendered rate.

The interest rate of the 10-year government bonds was accepted at a 5.67 percent term rate, with annual simple and compound interest rates of 11.34 and 11.66 percent, respectively.

At Tuesday's second auction, the Treasury borrowed 2.3 billion Turkish liras ($618 million) by issuing 7-year floating rate notes (re-open, fourth issue), which will be settled on Wednesday and mature on June 5, 2024.

According to the statement, the total tender for the notes was 5.2 billion Turkish liras ($1.4 billion), with a 44.3 percent accepted/tendered rate.

The undersecretariat said the term rate of 7-year notes was accepted at 5.97 percent, while annual simple and compound interest rates were 11.94 and 12.30 percent, respectively.

At the last auction on Tuesday, the Treasury issued 2-year fixed coupon bonds (semiannually, re-open, sixth issue), which amounted to 2.25 billion Turkish liras ($605 million). The bonds will be settled on Wednesday and mature on May 15, 2019.

The total tender for the bonds was 4.12 billion Turkish liras ($1.11 billion) with a 54.6 percent accepted/tendered rate.

The Treasury said the interest rate of the re-opened government bonds was accepted at a 6.06 percent term rate, with annual simple and compound interest rates of 12.11 and 12.48 percent, respectively.