Turkey's Treasury holds auctions to borrow over $1B

By Muhammed Ali Gurtas

ANKARA

Turkey's Undersecretariat of Treasury borrowed nearly 3.8 billion Turkish liras ($1.08 billion) from the domestic market in two separate auctions Tuesday, according to an official statement.

Turkey's Treasury announced that 2.78 billion Turkish liras ($797 million) 10-year fixed coupon bonds (semiannually, re-opened, second issue) were up for auction that will be settled on Wednesday and mature on Aug. 11, 2027.

According to the statement, the total tender for the bonds was 3.71 billion Turkish liras ($1.06 billion) with a 75 percent accepted/tendered rate.

The treasury said the interest rate of the re-opened 10-year fixed coupon bonds was accepted at a 5.28 percent term rate while annual simple and compound interest rates were 10.56 and 10.84 percent, respectively.

In the meantime, another auction for 11-month treasury bills (zero coupon, re-opened, third issue) was held on Tuesday, and the treasury borrowed 974 million Turkish liras ($279 million). Treasury bills will be settled on Wednesday and mature on Aug. 8, 2018, according to the statement.

The total tender for 11-month zero coupon treasury bills was 2.34 billion Turkish liras (nearly $671 million) with a 41.6 percent accepted/tendered rate.

The interest rate of the re-opened treasury bills was accepted at a 10.39 percent term rate while annual simple and compound interest rates were 11.75 and 11.83 percent, respectively.