Page 4 - TURKRptNov20

1.0 ​Executive summary
Winter is coming...
USD/TRY latest record: 8.3244 on October 28. Erdogan ​shocked​the market with holding the headline policy rate constant.
Turkey's economic data “are ​compiled​by loyal officials and detached from reality”. Finance Minister Berat Albayrak ​predicted​2020 growth of 0.3%.
In a surprise move as usual, the Turkish Treasury ​sold​$2.5bn 5-year eurobonds at 6.375% coupon. Ulker ​sold​$650mn 5-year papers at 6.95%. The wealth fund ​cancelled​the auction due to higher-than-expected cost. Istanbul Municipality i​s​on the queue.
Global Ports’ $250mn papers due November 2021 ​are​under focus. Fitch and Moody’s ​downgraded​Turkish mall operator Ronesans’ $300mn eurobonds. Fitch cut Tupras to four notches below investment grade (See Section 8.5.1).
Akbank ​set​the benchmark for syndicated loan ​renewals​at 15-25bp more expensive costs. Halkbank trial will be ​held​in March.
Turkish retailers at shopping malls are still ​struggling​with COVID-19 impacts.
New ​wave​of high stake loan restructurings: Consortiums building mega hospital projects along with energy company ​Bereket​are restructuring loans while Dogus and Yildiz holdings are leading high stake restructurings of already restructured bank debts. Turkish hospitals ​seek​discounts on $2.4bn of medical sector debts. Turkey's wealth fund is ‘in t​alks​to provide emergency funding to Turkish Airlines’ (See Section 8.1.4).
Passenger traffic at Turkish airports ​plunged​62% y/y in Jan-Sep.
Facebook ‘is r​efusing​compliance with Erdogan’s social media law’.
Istanbul venture capital firm 212 ​announced​a €49mn new fund.
Q3 financials season at Borsa Istanbul (See Section 4.3.2).
Erdogan f​ired​his Russian missiles into a fog of confusion (See Section 2.4).
4​ TURKEY Country Report​ November 2020 ​ ​www.intellinews.com