BusinessTurkiye

Isbank Issues $500 Million Eurobond as Additional Tier 1 Capital

Turkey’s Isbank has successfully completed its first Additional Tier 1 (AT1) capital Eurobond issuance in international markets. Marking the first international issuance from Turkey in 2025, the $500 million Eurobond was issued with a coupon interest rate of 9.125%.

According to the bank’s statement, the issuance attracted demand totaling $1.5 billion, showcasing strong investor interest across a broad geographical area. The allocation of the Eurobonds was as follows:

  • 41% to the United Kingdom
  • 28% to Middle Eastern countries
  • 21% to Europe
  • 8% to the United States
  • 2% to Asian countries

The investor composition included:

  • 42% from funds and asset management companies
  • 36% from banks
  • 19% from hedge funds
  • 3% from other investors

“Strengthening Our Balance Sheet While Supporting the Economy”

Hakan Aran, Isbank’s General Manager, expressed satisfaction with the transaction, stating:
“As we start a new year, we are pleased to initiate the international bond markets for Turkish issuers with this transaction. This issuance, which marks our first Additional Tier 1 capital borrowing, adds a new Eurobond type to our prior issuances.

In line with our historical mission, we have not only created foreign currency resources for Turkey’s economy—which we have passionately supported for a century—but also strengthened our balance sheet.

We recognize the importance of preparing our economy’s key drivers, particularly SMEs, for the evolving and digitized requirements of a sustainable future. By leveraging this additional capital resource, we will continue to serve the Turkish economy with unwavering dedication.”

Source: Bloomberght/ Prepared by: İlayda Gök

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