Turkey sells $2.25bn of 10-year eurobonds with 5.95% coupon

Turkey sells $2.25bn of 10-year eurobonds with 5.95% coupon
By Akin Nazli in Belgrade November 25, 2020

The Turkish Treasury has sold $2.25bn of 10-year eurobonds at a coupon of 5.95% and a yield to investor of 6%, the finance ministry said on November 25.

The spread over US Treasury papers fell to 512bp from the 609bp seen at the previous auction held in October.

The latest eurobond sale was “a last gasp bond deal before the market starts to run down for the year”, Global Capital commented on November 24.

Also on November 24, Romania sold €1bn of 9-year papers at 1.46% and €1.5bn of 20-year papers at 2.65%.

Moody’s Investors Service rates Romania at Baa3/Negative while Fitch Ratings sees the country at BBB-/Negative and Standard and Poor’s assigns a BBB-/Negative. All ratings are one notch above investment grade.

Serbia, also on November, sold $1.2bn of 10-year papers at a 2.125% coupon.

Moody’s rates Serbia at Ba3/Positive, three notches below investment grade. Fitch sees the country at BB+/Stable and S&P assigns a BB+/Stable. Both ratings are one notch below investment grade.

Istanbul Municipality is also in the market, looking to sell $650mn of eurobonds.

On November 17, Global Capital reported that after the US Thanksgiving holiday on November 26, liquidity traditionally dries up like so much overcooked turkey.

Fitch Ratings rates Turkey at BB-/Negative, three notches below investment grade. Moody’s Rating Services rates Turkey at B2/Negative, five notches below investment grade, while Standard & Poor’s has Turkey at B+/Stable, four notches below investment grade. 

Turkey's 5-year credit default swaps (CDS) were hovering in the 390s on November 25.

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