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A US federal court on February 21 rejected an appeal from state-run Halkbank (HALKB) for special representation that would have allowed for a pause in proceedings on an indictment for Iran sanctions evasion.
FX deposits hit fresh records in February. Foreign holdings share in domestic government bonds fell to a historical low of 9.4%.
Total net portfolio outflows from have amounted to $2.6bn from December 20 to February 14.
Treasury sold $4bn eurobonds. Sasa Polyester (SASA) mandated an unnamed Europe-based international financial institution to sell up to €150mn worth of EUR-denominated 5-year convertible bonds. Yapi Kredi Bank (YKBNK) mandated its headquarters to launch the process to sell up to $7bn worth of Eurobonds abroad.
The central bank launched the biggest government debt buybacks in over a decade as foreigners fleed. Switch auctions continue.
Discount chains BIM (BIMAS) and A101 have been ranked at 5th and 14th, respectively, on Deloitte’s global ranking of the 50 fastest growing retailers. Morocco threatened to close stores of BIM.
Three passengers died after a Pegasus (PGSUS) passenger jet skid off the runway at Istanbul’s Sabiha Gokcen Airport and broke into three parts. Turkish Airlines’ (THYAO) number of passengers declined 0.4% y/y in January. Pegasus served 2.57mn passengers in January, up 9.4% y/y. Atlasjet filed for bankruptcy less than a year after moving to Istanbul’s mega airport.
Turkey ETF was hit by lira depreciation. BlackRock shifted its position in Tupras (TUPRS) stock.
Q4 profits season at Borsa Istanbul. Borsa Istanbul-listed lenders are opting not to distribute dividends but real sector dividend payers are progressing. On December 17, BloombergHT reported, citing “a document seen by the publication”, that the BDDK had “advised” local lenders not distribute dividends from their 209 profits.
TAV (TAVHL) will on March 27 distribute 4% dividend per share. Tofas (TOASO) is expected to distribute 7% per share. Arcelik is estimated to distribute 3% per share. Tupras (TUPRS) will not distribute dividends. Yapi Kredi (YKBNK) becomes the first Turkish lender announcing that it will not distribute dividends. Last year, the banking watchdog had ‘advised’ banks not to distribute dividends. Isbank (ISCTR) had tried but the BDDK had not allowed.
Turkcell (TCELL) is prepaying a club loan and intensifying cooperation with Huawei. Arcelik (ARCLK) and Tata jointly inaugurated a production plant in India.
Winds of consolidation at Borsa Istanbul are strengthening with the Sisecam (SISE) Group merger. Wealth Fund (TVF) acquired a 10% stake in local insurer Gunes Sigorta (GUSGR) from Groupama Holding. Anadolu Group (AGHOL) sold McDonald’s Turkey franchise for $47mn.
Competition authority fined Google $16mn for violating competition rules. Start-up Getir is ‘in talks to raise an additional $100mn in funding’.
All three shareholders of Polat Enerji mandated the UK-based Barclays for the sale of the Turkish wind power producer. Azerbaijan signed a gas supply contract with Italy via the Trans-Anatolian Pipeline (TANAP) across Turkey. Turkey’s electricity production capacity reached 91,342MW in January.
5 TURKEY Country Report March 2020 www.intellinews.com
