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Southeast Europe
March 8, 2019 www.intellinews.com I Page 13
Busiest eurobond week for Turkey in close to three years
Akin Nazli in Belgrade
A roadshow on a move by Turkey’s top glass maker Sisecam to sell seven-year US dollar eurobonds produced initial price guidance of 7.375%-7.5%, Reuters reported on March 7.
Also on March 7, Reuters reported that a roadshow on Yapi Kredi Bank’s plan to sell $500mn worth of 5.5-year eurobonds gave initial price guidance of 8.25%. Citi, Emirates NBD Capital, Morgan Stanley, SMBC Nikko, Standard Chartered Bank and UniCredit were leading the bookbuilding.
Yapi Kredi has executed future flow transactions with maturities of 2025 and 2027 under its "diversified payment rights" programme for
an amount of $711.6mn together with treasury transactions, it said on February 25 in a stock market filing.
Reporting on how two Turkish borrowers – Sisecam and Yapi Kredi – had hit the market on March 7, with Sisecam returning to the market after a six-year hiatus, Global Capital wrote that in the wake of the $750mn Koc Holding eurobond deal this week, there were now three deals that made this Turkey’s busiest week on the debt markets in almost three years.
As Turkish private companies rush into selling eurobonds following government debt sales, Turks continue to buy FX. Turkish resident individuals’ FX deposits at local lenders rose by another $700mn to $103.6bn as of March 1, according to the central bank’s weekly bulletin published on March 7.
Turkish resident individuals’ FX deposits saw a record high level of $104.1bn in April 2016.
They increased their total FX deposits by $13.8bn in an uninterrupted 21 weeks of growth from $89.8bn as of October 5.
In August last year, Turkish resident individuals sold $8bn of FX deposits to benefit from the high USD/TRY rate that came as the lira crisis reached its nadir.
Local corporates increased their FX deposits by $350mn w/w to $67.4bn as of March 1, and, consequently, Turkish residents’ overall FX deposits rose by $1bn w/w to $171bn.
Meanwhile, net portfolio inflows into Borsa Istanbul so far this year rose to $1.39bn as of March 1 versus net outflows of $707mn from government domestic bonds, the central bank announced on March 7.
Sisecam shares were down 0.45% d/d to TRY6.62 as of 15:30 local time on March 7 while the Borsa Istanbul benchmark BIST-100 index was up 0.36% to 103,829. The annual gain on the BIST- 100 stood at 14% versus a 38% y/y rise in the Sisecam share price.
The BIST-100 was moving around the 87,000s on January 3 but rallied into the 104,000s by January 29 on the back of bank shares. Sisecam shares were trading in the 5.20s on January 3.