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half-a-dozen banks to help arrange the deal. The wealth fund is rated three levels below junk by Fitch Ratings with a stable outlook. The sources were also reported as saying that TVF was working on getting a grading from a second international rating firm.
The fund’s apparent weighing up of a decision on a eurobond sale is taking place with central banks around the world pursuing stimuli that are spurring a global rally in junk bonds, Bloomberg noted.
In the last auction held by a Turkish issuer prior to Akbank’s latest issuance, the Turkish Treasury in February sold $2bn of 5-year eurobonds with a 4.25% coupon and $2bn of a 10-year paper at 5.45%.
On June 5, the Turkish Treasury redeemed $2bn worth of eurobonds. They were sold in two parts, in 2005 and 2007, and pay a 7% coupon.
On May 18, it redeemed €2bn worth of eurobonds sold in two parts in 2010. They paid a 5.125% coupon.
In May, it tapped €1.64bn via one-year euro-denominated bonds and lease certificates with a 1.25% semi-annual coupon and $1.35bn from one-year USD-denominated bonds and lease certificates with a 1.75% semi-annual coupon from local lenders.
In March, the Treasury tapped €1.26bn from local lenders in EUR-denominated paper with a 0.75% semi-annual coupon.
In what’s left of 2020, the Treasury has Japanese yen (JPY) 60bn of samurai bonds maturing in December.
9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1​ Oil & gas sector news
Diesel demand in Turkey over the first 25 days of July grew by 6.1% y/y​ to 1.589mn litres, energy ministry data ​showed​. That compared to the 8.2% gain reported in June and the 27.7% decline in May, when coronavirus (COVID-19) crisis travel restrictions still held sway.
The data also showed that gasoline demand over the first 25 days of July amounted to 267mn litres, marking a 22.5% y/y gain. June brought a 2.1% decline, while May saw demand plummet 32.4%.
The bulk of gasoline consumption in Turkey is from higher-end passenger vehicles, with the sharp fall in demand from April through June thought to reflect a large number of people who normally commute to work, working from home, according to S&P Global Platts.
Turkish daily Milliyet reported on July 21 that 90% of Turkey's rental cars had already been rented ahead of the Eid holiday, as Turks who do not own cars attempt to avoid using mass transportation. The holiday runs from July 31 to August 3.
The US State Department is taking steps that could expose investors in two pipeline projects designed to carry natural gas from Russia to Turkey and Europe to sanctions​, US Secretary of State Mike Pompeo ​said​.
67​ TURKEY Country Report​ August 2020 ​ ​www.intellinews.com