Turkish Treasury borrows $1.8B through auction

Treasury and Finance Ministry issues government bonds for borrowing from domestic markets

The Turkish Treasury borrowed nearly 12.6 billion Turkish liras (nearly $1.8 billion) from domestic markets on Monday.

Some 7.6 billion Turkish liras ($1.1 billion) in 14-month zero coupon Treasury bills first issue were sold in the first auction, the Treasury and Finance Ministry announced.

The Treasury bills will be settled on Wednesday and mature on June 9, 2021.

The total tender amounted to 11.4 billion Turkish liras ($1.7 billion), with a 66.7% accepted/tendered rate.

The Treasury said the term rate of the 427-day Treasury bills was accepted at 14.21%, while the annual simple and compound interest rates were 12.11% and 11.99%, respectively.

In the second auction, the Treasury issued eight-year, CPI-Indexed G.Bond semiannually, reopen, 1.65% coupon rate totaling 5 billion Turkish liras (nearly $740 million).

The bonds will be settled on Wednesday with a maturity date of June 28, 2028.

The total tender in the second auction amounted to 6.5 billion Turkish liras (nearly $961 million), with a 77.5% accepted/tendered rate.

The term rate of 3,003-day government bonds was accepted at 1.77%, while the annual simple and compound interest rates were 3.55% and 3.58%, respectively.

The Treasury also announced: “In order to increase domestic savings, broaden the investor base, and diversify borrowing instruments, Turkish lira-denominated, CPI-Indexed lease certificates will be issued to the banks through direct sale method on April 8 (settlement date).”

In this respect, participants will have to submit their bids on April 7th (by 2:00 p.m.) to the Treasury by fax or e-mail, it added.

Anadolu Agency

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