Page 78 - TURKRptDec19
P. 78
It was reported on October 18 that flag carrier Turkish Airlines had mandated lenders for eurobonds or Enhanced Equipment Trust Certificates. However, nothing has been heard of the move since then.
In November, Istanbul mayor Ekrem Imamoglu, a newcomer to global finance circles, was in London to test waters for a $500mn eurobond sale. He currently waits the required approval from the Turkish Treasury.
On November 8, government-run Vakifbank received approval from the Turkish capital markets board (SPK) to issue €1bn worth of mortgage-backed securities abroad.
On November 18, private lender Yapi Kredi cut the issuance limit for its mortgage-backed eurobonds, already approved by the SPK, to €500mn from €1bn.
During autumn last year, the Turkish government “encouraged” local pension funds to buy local lenders’ mortgage-backed securities designed to create room for fresh lending in balance sheets following the currency crash in August. There has been talk of selling mortgage-backed papers abroad since then, along with the sale of NPLs to foreign investors.
The level of foreign interest in the mortgage-backed eurobond auctions in the making is awaited with a good deal of curiosity but how many of the buyers will have ‘moustaches’ (Turks buying via foreign entities) or what the source of capital will be are questions that remain unanswered given “confidentiality” dogma in the global finance industry.
The next scheduled eurobond redemption by the Turkish Treasury is set for May 18, 2020. A repayment of €2bn for 10-year EUR-denominated papers is scheduled. Also in 2020, the Treasury will, on June 5, redeem $2bn in 15-year USD papers. On December 3, it will redeem JPY60mn in samurai bonds.
The next scheduled eurobond redemption by a Turkish lender is scheduled for January 24, 2020 when private lender Akbank will repay $500mn (XS1111101314).
Also in 2020, state-run Halkbank will repay, on February 5, $750mn (XS0882347072) while Industrial Development Bank of Turkey (TSKB) will redeem, on April 22, $350mn and Isbank will repay, on April 30, $750mn.
78 TURKEY Country Report December 2019 www.intellinews.com
