Turkish Treasury borrows $976M through auctions


Turkish Treasury borrows $976M through auctions

The Turkish Treasury borrowed 5.66 billion Turkish liras ($976.2 million) from domestic markets through three auctions on Tuesday.

Some 3.69 billion Turkish liras ($636.4 million) in six-month zero coupon Treasury bills — semiannually, reopen, second issue — were sold in the first auction, the Treasury and Finance Ministry announced.

The Treasury bills will be settled on Wednesday and mature on June 6, 2020.

The total tender amounted to 5.56 billion Turkish liras ($959.1 million), with a 66.3% accepted/tendered rate.

The Treasury said the term rate of the 182-day Treasury bills was accepted at 5.51%, while the annual simple and compound interest rates were 11.02% and 11.32%, respectively.

In the second auction, the Treasury issued seven-year floating rate coupon bonds –semiannually, new issuance — totaling 1.97 billion Turkish liras ($340.6 million).

The bonds will be settled on Wednesday with a maturity date of Nov. 4, 2026.

The total tender in the second auction amounted to 2.9 billion Turkish liras ($503.6 million), with a 67.6% accepted/tendered rate.

The term rate of 2,520-day government bonds was accepted at 7.25%, while the annual simple and compound interest rates were 14.50% and 15.03%, respectively.

Under the ministry’s borrowing strategy, the Treasury projects holding 19 bond-auctions and a direct sale of lease certificates during the December-February period to borrow some 61.6 billion Turkish liras ($10.7 billion) from domestic markets.

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