Turkey to sell 2026, 2031 bonds via Citigroup, Goldman, JPMorgan

Turkey will sell dollar-denominated bonds maturing in 2026 and 2031.

The Treasury and Finance Ministry hired Citigroup, Goldman Sachs and JPMorgan for the dual-tranche issue, it said in a statement on its website on Tuesday.

Turkey’s government is re-entering the international bond market as it seeks to take advantage of an improvement in global risk appetite. Rate hikes by the central bank in November and December have also bolstered foreign investor confidence in the economy, undercut by accelerating inflation and losses for the lira.

Sovereign debt issuance by emerging markets may total $140 billion this year, with a swathe of high-yielding bond offerings offsetting a slowdown in investment-grade sales, Goldman Sachs said in November. Turkey’s debt is rated junk by major credit ratings agencies.

Turkey sold $2.25 billion worth of 2031 dollar-denominated bonds in November at 511.7 basis points above U.S. Treasury rates. That brought a 6 percent annual return for investors. It hired Goldman Sachs, HSBC and Morgan Stanley to manage that transaction.

Foreign bond sales by Turkey in 2020 totalled $8.75 billion. It also issued five and 10-year debt in February and October.