Turkey: Treasury borrows some $1.3B through auctions

ANKARA

The Turkish Treasury borrowed some 7.58 billion Turkish liras ($1.27 billion) from domestic markets on Tuesday, according to an official statement.

The Treasury and Finance Ministry said that the first auction was held for 2-year fixed coupon bonds (semiannually, re-open, second issue) and amounted to 4.5 billion Turkish liras ($754 million).

The government bonds will be settled on Wednesday and mature on April 21, 2021.

The interest rate of the 707-day bonds was accepted at an 11.94% term rate, with annual simple and compound interest rates of 23.88% and 25.31%, respectively.

The total tender for the bonds was 5.7 billion Turkish liras ($951 million) with a 79.2% accepted/tendered rate.

At a second auction on Tuesday, the Treasury borrowed 3 billion Turkish liras ($500 million) by issuing six-year floating rate bonds (reopen, fifth issuance), which will be also settled on Wednesday and mature on Aug. 06, 2025.

According to the ministry, the total tender in the second auction amounted to 3.9 billion Turkish liras ($1.14 billion), with a 77.8% accepted/tendered rate.

The interest rate of 2,275-day bonds was accepted at a 10.17% term rate, while annual simple and compound interest rates stood at 20.34% and 21.38%, respectively.