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Southeast Europe
March 22, 2019 www.intellinews.com I Page 17
Turkey sells billion dollars of 10-year eurobonds at 7.15%
Akin Nazli in Belgrade
The Turkish Treasury has sold $1bn worth of USD-denominated eurobonds due April 2029 at a coupon rate of 7.625% and a yield to the investor of 7.15%, the Ministry of Treasury and Finance announced on March 20.
Initial price guidance on the 10-year paper was set at 7.25%, unnamed bankers told Reuters on March 19.
The offering attracted an orderbook approximately three times the issue size, according to the Treasury.
At the previous auction held in January for identical paper, the Treasury raised $2bn at a yield to the
investor of 7.68% and a coupon rate of 7.625% while the spread over US Treasury paper hit 497bp.
At the latest auction, the spread over US Treasury yields declined to 454bp.
The total amount of the USD bond issuance was converted into an equivalent EUR liability. As a result of this swap transaction, the EUR-denomi- nated coupon rate was realised as 4.859%, lower than the 4.965% recorded at the previous auction held in January. The EUR-equivalent yield to the investor was realised as 4.381%.
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Croatian government fails to decide on €930mn Uljanik restructuring Carmen Simion in Bucharest
Members of Croatia's ruling coalition failed to decide on March 20 if troubled shipbuilding group Uljanik should undergo restructuring or file for bankruptcy, the head of the parliamentary group of the Croatian Democratic Union (HDZ), Branko Bacic, said, according to Hina news agency.
A decision should be made within a few days.
Uljanik, which owns the Uljanik shipyard in Pula and the 3. Maj shipyard in Rijeka, is in severe financial difficulties. The shipbuilder has already lost several vessel construction deals and has seen its bank accounts frozen several times, while
its employees went on strike due to unpaid wages.
Economy Minister Darko Horvat said on March 20 that in the short term the bankruptcy would be
a cheaper solution than the restructuring. “But in the long run, in the following ten years, it is
a matter of controversy,” Horvat said, according to Total Croatia News.
The economy minister estimated that the restructuring of Uljanik would cost €930mn.
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