Turkish Treasury borrows $1.1B through auctions

By Aysu Bicer

ANKARA (AA) - The Turkish Treasury borrowed 8 billion Turkish liras ($1.1 billion) from domestic markets on Tuesday, an official statement said.

Turkey's Treasury and Finance Ministry announced that some 2.35 billion Turkish liras ($318 million) in floating rate note bonds -- reopen, second issuance -- were sold in the first auction.

The Treasury bill will be settled Wednesday and mature on Nov. 17, 2027. The total tender amounted to 4.2 billion Turkish liras ($568 million) with a 56.3% accepted/tendered rate.

The term rate of the 2,506-day government bonds was accepted at 6.95%, while the annual simple and compound interest rates were 13.91% and 14.39%, respectively.

In the second auction, the Treasury issued a five-year Fixed Coupon Bond -- reopen, sixth-issue -- totaling 5.7 billion Turkish liras ($771 million).

These will also be settled on Wednesday with a maturity date of Nov. 13, 2030.

According to the ministry, the total tender in the second auction amounted to 8.7 billion Turkish liras ($1.2 billion), with a 65% accepted/tendered rate.

The term rate of the 3,598-day government bonds was accepted at 6.39% of the periodic interest rate, while the annual simple and compound interest rates were 12.78% and 13.19%, respectively.