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Weekly Lists
February 1, 2019 www.intellinews.com I Page 30
bne:Credit
Turkey’s largest conglomerate Koc to offer $1bn of eurobonds
Romania’s government to suspend domestic debt issues, use buffer instead
Turkey’s largest conglomerate Koc Holding on January 30 applied to the Capital Markets Board (SPK) to issue up to $1bn worth of eu- robonds within a one-year period following regulatory approval, the holding company said on January 29 in a stock market filing.
Koc Holding shares were up 1.48% d/d to TRY17.15 as of 15:00 local time on January 29 while the Istanbul bourse’s benchmark BIST- 100 was up 1.17% to 102,476. The annual loss on Koc shares stood at 6% versus the 12% y/y gain showing on the BIST-100.
Koc is the only Turkish company that made it on to the Fortune 500 list published in 2017 while its combined revenues amount to 7% of Turkey’s GDP, according to an investor presentation on the company’s website.
Romania’s Finance Minister Eugen Teodorovici announced on Janu- ary 29 that he has instructed the Treasury to no longer borrow money from the local market since the cash buffer is large enough to fi- nance the deficit for six months. The Treasury had already rejected banks’ offers for 10-year bonds the same day, but such situations have frequently occurred in the past.
The move marks an escalation, highly risky and potentially costly for the government, of the tense relations with local banks, which start- ed with the supplementary tax on financial assets adopted at the end of December with no prior consultation.
Teodorovici implied that the finance ministry's decision not to borrow from local banks came as a result of an artificial increase in borrow- ing costs.
Macedonia’s sovereign seven-year bonds hit a one-year high following the recent ratification of the name deal by the Greek parliament.
Macedonia’s latest €500mn Eurobond was issued in January 2018, the sixth Eurobond issue so far.
The name deal with Greece, which was signed in June last year, resolves the long-standing dispute between Skopje and Athens and opens the way for Macedonia to join Nato under the new name North Macedonia and to obtain a date for the launch of EU accession talks later this year.
Macedonian bonds reach record high following name deal with Greece