Turkey Mandates Major Banks for 7-Year USD-Denominated Bond Issuance
bonds
Turkey’s Treasury has authorized a new 7-year U.S. dollar-denominated bond issuance as part of its 2025 external financing program, the ministry announced on Tuesday.
According to the statement, the 2032-maturity sovereign bond will be arranged by a consortium of international financial institutions, including Bank of America, BNP Paribas, HSBC, and Morgan Stanley.
The initial yield guidance for the bond is reportedly set around 7.750%, reflecting current global market conditions and investor appetite for emerging market debt.
Part of Broader External Borrowing Plan
The bond issuance is expected to contribute to Turkey’s broader strategy to diversify its investor base and ensure access to long-term external financing. The 2025 borrowing framework includes a mix of eurobond sales, sukuk (Islamic bonds), and loans from international markets.
In 2024, Turkey had raised several billion dollars through multiple bond tranches across different currencies and maturities. This latest issuance marks a continued effort to stabilize financing channels amid global interest rate volatility and domestic economic restructuring.
Global Investors Watching Closely
Market analysts are closely monitoring Turkey’s return to the international bond market. The relatively high initial yield guidance suggests the Treasury aims to ensure robust demand, especially from yield-seeking institutional investors amid tighter global liquidity.
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