Turkish Treasury borrows over $1.9B through auctions

ISTANBUL

The Turkish Treasury borrowed a total of around 11 billion Turkish liras ($1.93 billion) from domestic markets on Tuesday, according to an official statement.

The Treasury and Finance Ministry reported that nearly 2.1 billion Turkish liras ($365.4 million) in three-month zero coupon government bonds (first issue) were sold in an auction.

The government bonds will be settled on Wednesday and mature on Oct. 9. The total tender amounted to 3.7 billion Turkish liras ($647.2 million) with a 56.4% accepted/tendered rate.

The Treasury said the term rate of 91-day government bonds was accepted at 5.15%, while the annual simple and compound interest rates were 20.60% and 22.25%, respectively.

In Tuesday's second auction, the Treasury issued two-year fixed coupon government bonds (semiannually, re-open, fourth issue) totaling 6.07 billion Turkish liras ($1.06 billion).

The bonds will be settled on Wednesday with a maturity date of April 21, 2021.

According to the ministry, the total tender in the second auction amounted to 7.7 billion Turkish liras ($1.35 billion), with a 78.9% accepted/tendered rate.

The term rate of 651-day government bonds was accepted at 9.25%, while the annual simple and compound interest rates were 18.50% and 19.35%, respectively.

In the day's last auction, the Treasury issued six-year floating-rate government bonds (semiannually, re-open, seventh issue) totaling 2.86 billion Turkish liras ($500.3 million).

The bonds will be settled on Wednesday with a maturity date of Aug. 6, 2025.

According to the ministry, the total tender in the second auction amounted to 5.25 billion Turkish liras ($742.9 million), with a 67.4% accepted/tendered rate.

The term rate of 2,219-day government bonds was accepted at 9.68%, while annual simple and compound interest rates were 19.36% and 20.30%, respectively.

The Treasury on Monday also borrowed nearly 12.3 billion Turkish liras ($2.15 billion) from domestic markets via two auctions.

According to the ministry's borrowing strategy, the Treasury projects to hold 14 bond-auctions and a direct sale of lease certificates this July-September to borrow some 36.5 billion Turkish liras ($6.3 billion) from domestic markets.