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Ulker Biskuvi (ULKER), Turkey’s leading confectionery maker, owned by Yildiz Holding, has sold $650mn of 5-year eurobonds,​the company ​said​on October 22 in a stock exchange filing. The final coupon rate has come in at 6.95%, 660.1bp higher than US Treasuries and 57.5bp higher than what eventuated at the Turkish Treasury’s recent $2.5bn 5-year auction.
“​Corporate issuances are more of a cost concern​rather than a matter of accessibility. We have a strong pipeline for the upcoming period,” Mustafa Bagriacik of JPMorgan t​old​Bloomberg on October 20.
Also on October 22, Bloomberg r​eported​that I​stanbul Municipality was in talks with banks to sell at least $500mn of eurobonds.​
The Capital Markets Board of Turkey (SPK) ​approved​on October 22 Istanbul Municipality’s application to sell up to €554mn of eurobonds.
The last EUR-denominated eurobond sale by s Turkish issuer took place in January 2019 by the Treasury. Subsequently, it swapped its USD-denominated papers into EUR to benefit from lower costs. At least that was the case until the latest auction earlier this month.
Fitch ​downgraded​Tupras by one notch to 'B+', four notches below investment grade,​with a Negative outlook.
34​ TURKEY Country Report​ November 2020 ​ ​www.intellinews.com