Turkish Treasury borrows $1.2B through auctions

By Tuba Sahin

ANKARA (AA) - The Turkish Treasury borrowed 8.71 billion Turkish liras ($1.17 billion) from domestic markets on Monday, according to an official statement.

The Treasury and Finance Ministry announced that some 3.91 billion Turkish liras ($530 million) two-year fixed coupon bond -- semiannually, third issuance -- was sold in the first auction.

The Treasury bill will be settled on Wednesday and mature on Nov. 9, 2022. The total tender amounted to 7.6 billion Turkish liras ($1 billion) with a 51.4% accepted/tendered rate.

The term rate of 672-day government bonds was accepted at 7.26%, while the annual simple and compound interest rates were 14.51% and 15.04%, respectively.

In the second auction on Monday, the Treasury issued five-year Fixed Coupon Bond -- semiannually, fourth-issue -- totaling 4.8 billion Turkish liras (nearly $650 million).

The bonds will be settled on Wednesday with a maturity date of Oct. 1, 2025.

According to the ministry, the total tender in the second auction amounted to 7.9 billion Turkish liras ($1.1 billion), with a 60.9% accepted/tendered rate.

The term rate of 1,729-day government bonds was accepted at 6.50% of the periodic interest rate, while the annual simple and compound interest rates were 13% and 13.42%, respectively.