Turkish Treasury borrows $604M through auctions

By Gokhan Ergocun

ISTANBUL (AA) - The Turkish Treasury on Tuesday borrowed nearly 4.76 billion Turkish liras ($604.4 million) from domestic markets.

Some 2.29 billion Turkish liras ($290.8 million) in two-year fixed coupon bonds (semiannually, re-open, sixth issue) were up in the first auction, and are due to be settled on Wednesday and mature on May 4, 2022, the Treasury and Finance Ministry said.

The total tender for the government bonds was 6.37 billion Turkish liras ($808.58 million) with a 36% accepted/tendered rate.

The Treasury said the term rate of 560-day government bonds was accepted at 6.73%, while the annual simple and compound interest rates were 13.45% and 13.90%, respectively.

In the second auction of the day, the Treasury issued seven-year floating rate note bonds (semiannually, re-open, sixth issue) totaling 2.47 billion Turkish liras ($313.65 million).

The bonds will be settled on Wednesday with a maturity date of May 5, 2027.

According to the ministry, the total tender in the second auction amounted to 5.76 billion Turkish liras ($732.3 billion), with a 42.9% accepted/tendered rate.

The term rate of 2,387-day government bonds was accepted at 4.88%, while the annual simple and compound interest rates were 9.77% and 10.01%, respectively.