Turkey’s Treasury borrows $1.84B through bond auctions

By Muhammed Ali Gurtas

ANKARA (AA) – Turkey’s Treasury borrowed 6.33 billion Turkish liras ($1.84 billion) from the domestic market in two separate auctions Tuesday, according to an official statement.

Turkey's Undersecretariat of Treasury announced that 4.21 billion Turkish liras ($1.22 billion) five-year fixed coupon bonds (semiannually, re-opened, second issue) were up for auction that will be settled on Wednesday and mature on Aug. 17, 2022.

According to the statement, the total tender for five-year bonds was around 9.94 billion Turkish liras (nearly $2.71 billion) with a 42.4 percent accepted/tendered rate.

The Treasury said the interest rate of the re-opened five-year fixed coupon bonds was accepted at a 5.32 percent term rate while annual simple and compound interest rates were 10.64 and 10.93 percent, respectively.

Meanwhile, the Treasury borrowed 2.12 billion Turkish liras (around $617 million) through another auction for ten-year CPI indexed government bonds (semiannually, re-opened, second issue) that will be settled on Wednesday and mature on July 7, 2027.

The total tender for 10-year government bonds was 5.7 billion Turkish liras (nearly $1.65 billion) with a 37.2 percent accepted/tendered rate.

The interest rate of the re-opened CPI indexed bonds was accepted at a 1.41 percent term rate while annual simple and compound interest rates were 2.82 and 2.84 percent, respectively.