Turkish Treasury to issue euro-denominated bonds

By Muhammed Ali Gurtas

ANKARA

Turkish Treasury will launch new euro-denominated securities starting this week, according to the Ministry of Treasury and Finance on Tuesday.

"In order to diversify the borrowing instruments and to broaden investor base, the ministry will issue the euro-denominated government bonds and lease certificates to resident and non-resident individual investors (natural persons) starting from Sept. 12," the ministry said in a statement.

The ministry stated that the decision was taken upon request from Turkish citizens living abroad.

"The demand for the securities will be collected in different rounds by Ziraat Bank and Ziraat Bank Internet Banking [online channel]," it said.

The Treasury noted that the issuance and redemptions of the securities will be carried out through Ziraat Bank branches -- Turkey's largest state-run lender.

"The securities will be transferred to the investors’ bank accounts on Wednesdays following the demand collection period of the related round," it said.

According to the official statement, the new securities will be issued with one-year (364 day) maturity.

"Certificates will be issued by the multiples of 1,000 euros," the ministry said. "Investors can sell the securities to only Ziraat Bank at any time by the multiples of 1,000 euros and can receive principal and return with the accrued interest / lease income."

Last week, the Treasury also introduced its new gold-based borrowing securities -- gold bonds and lease certificates -- to diversify borrowing instruments, broaden the investor base, and bring idle gold into the economy.