Turkey’s Treasury mandated on Wednesday Barclays Capital, Deutsche Bank and JP Morgan for a global USD bond issue due 2041 as part of the 2011 borrowing program, a statement said on Thursday.
A Treasury statement said the transaction had been finalized with a nominal amount of 1 billion USD.
The bond matures on January 14, 2041 and has a yield to investor of 6.25 percent. With this transaction the lowest cost of borrowing to date was achieved among 30-year maturity bond offerings of Turkey. The bond has attracted an orderbook of approximately five times of the actual issue size, from 150 accounts in 21 countries. 65 percent of the nominal amount has been allocated to the foreign investors (33 percent Europe, 31 percent United States, 1 percent to Asia) while 35 percent has been allocated to the local investors.
The proceeds of the issue will be transferred to the Treasury accounts on January 12, 2011.