Türkiye İş Bankası has completed a $500 million Eurobond issuance in international markets, featuring an 11-year maturity with a call option in the sixth year, qualifying as additional tier capital, the bank said in a statement.
Strong investor demand enabled the bank to price the transaction at a coupon rate of 7.575%, which was 42.5 basis points below the initially indicated guidance level.
The Eurobonds attracted broad international interest, with allocations distributed as follows: 39% to the UK, 30% to Middle Eastern countries, 17% to Europe, 12% to the United States, and 2% to Asia.
By investor type, funds and asset management companies accounted for 42% of demand, followed by banks with 26%, hedge funds with 20%, and insurance and pension funds with 12%.
Commenting on the transaction, İş Bankası Chief Executive Officer Hakan Aran said the successful issuance, completed during a period of heightened volatility in global markets driven by geopolitical developments, reaffirmed international investors’ confidence in both Türkiye and the bank.
Aran noted that the deal further strengthened the bank’s capital structure and added:
“We are pleased to bring long-term foreign funding of $500 million into the Turkish economy. In line with our bank’s historic mission, we will continue to use these funds to support our customers’ financing needs with a focus on prioritizing investment, employment, and exports.”
Source: Anadolu Ajansı/ Prepared by: İlayda Gök