Turkish Treasury borrows $915M through auctions

ISTANBUL

The Turkish Treasury borrowed 7.11 billion Turkish liras ($915.04 million) from domestic markets on Tuesday, according to an official statement.

The Treasury and Finance Ministry announced that some 3.36 billion Turkish liras ($432.4 million) in four-year Turkish lira overnight reference rate (TLREF)-indexed bonds – quarterly, reopen, the fourth issue – were sold in the first auction.

The Treasury bill will be settled on Wednesday and mature on July 17, 2024. The total tender amounted to 13.6 billion Turkish liras ($1.75 billion), with a 24.7% accepted/tendered rate.

The Treasury said the term rate of 1,379-day government bonds was accepted at 2.52%, while the annual simple and compound interest rates were 10.07% and 10.46%, respectively.

In the second auction on Tuesday, the Treasury issued five-year fixed-coupon bonds – semiannually, first-issue – totaling 3.75 billion Turkish liras (nearly $482.6 million).

The bonds will be settled on Wednesday with a maturity date of Oct. 1, 2025.

According to the ministry, the total tender in the second auction amounted to 6 billion Turkish liras ($771.9 million), with a 62.5% accepted/tendered rate.

The term rate of 1,820-day government bonds was accepted at 6.29% of the periodic interest rate, while the annual simple and compound interest rates were 12.59% and 12.98%, respectively.