Turkish Treasury mulling lira Eurobond, no plan as of yet

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The Turkish Treasury may offer lira-denominated Eurobonds after Akbank’s pioneering bond sale last week, but no issue is planned in the short term, the treasury said on Thursday.

Akbank, Turkey’s third-largest private bank by assets, raised 1 billion lira with its Feb. 1 sale of five-year lira Eurobonds, the first by a Turkish borrower, drawing huge interest from foreign investors.

Its fellow lenders Garanti and Isbank are also widely expected to issue Eurolira bonds soon.

“The (Treasury) under secretariat is considering lira-denominated bond issues on international markets, but such an issue is not planned in the short term,” the Treasury said in a statement in response to an enquiry from Reuters.

The Treasury had said in its financing program for this year that it might raise funds using new domestic and international instruments.

In 2012, Turkey borrowed $6.1 billion from international capital markets by selling conventional bonds, lease certificates and selling yen-denominated bonds in Japan’s domestic market.

It plans to raise $6.5 billion this year in the form of sukuk, Eurobonds and Samurai bonds, a Treasury official told Reuters on Nov. 2.

The Treasury has already sold a $1.5 billion 10-year Eurobond and an 18.4 billion yen ($203 million) 20-year Samurai bond, both in January.

It raised $1 billion in December through a tap of its dollar-denominated January 2041 Eurobond, as pre-financing for 2013.

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