TURKEY: Foreign exchange bond issue nets $1,120 million

27 September 1996
News

The treasury accepted all bids from banks totalling $1,120 million for three-year bonds denominated in foreign exchange on 16 September. This first issue of such bonds is part of a package aimed at raising $10,000 million worth of fresh financial resources announced by the Islamist-led coalition in early July.

Maximum and minimum offer rates were $150 million and $15 million respectively for the bonds, which will carry interest of 260 basis points above the London interbank offered rate (Libor) There will also be a put option at the end of the second year.

Brokers say the successful bond issue will help the treasury extend the present short-term, average four-and-a-half-months maturity of its debt The issue also effectively means the treasury has already rolled-over its largest redemption on 25 September of TL 127 million million ($1,466 million) for the month, when payment for the bonds will be made, the brokers add.

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