Page 54 - TURKRptJul20

Nov 8, 2019
Vakifbank
SPK Approval
€1
-
mortgage-backed
Oct 18, 2019
Turkish Airlines
Mandated Lenders
-
-
bond or ETTC
Turkey’s sovereign wealth fund is working on a plan to sell eurobonds for the first time after ramping up investments in strategic assets, according to people with knowledge of the matter ​cited​ by Bloomberg.
Turkey Wealth Fund (TVF) is reportedly considering an issuance later this year of at least $2bn and will soon choose around half-a-dozen banks to help arrange the deal. The fund and the arrangers will then determine the maturity of the bonds and the exact amount, the sources were also quoted as saying.
The wealth fund is rated three levels below junk by Fitch Ratings with a stable outlook (See Section 6.1.3). The sources were also reported as saying it is working on getting a grading from a second international rating firm.
The Turkish Treasury ​signed​ a deal with Euroclear for settlement of domestic government bonds.
8.5.2​ Fixed income - govt funding plans
Even prior to the coronavirus (COVID-19) crisis, the domestic government borrowing market had been subject to a series of rather brutal interventions. From November 2018, with Turkey knocked off balance by the lira crisis, the administrators of the country’s economy employed tactics including cutting state lender bidding yields and scrapping 10-year bond sales.
54​ TURKEY Country Report​ July 2020 ​ ​www.intellinews.com