Turkish Treasury Borrows Some $632M Through Auctions

The Turkish Treasury borrowed around 5.12 billion Turkish liras ($631.95 million) from domestic markets, an official statement said on Monday.

The Treasury and Finance Ministry announced that some 2.17 billion Turkish liras ($267.84 million) in two-year fixed coupon rate government bonds – semiannually, reopen, the sixth issue – were sold in the first auction.

The total tender amounted to 4.26 billion Turkish liras ($525.7 million), with a 51% accepted/tendered rate.

The Treasury said the term rate of 567-day government bonds was accepted at 8.62%, while the annual simple and compound interest rates were 17.24% and 17.98%, respectively.

The Treasury bills will be settled on Wednesday and mature on Nov. 9, 2022.

In the second auction, the Treasury issued four-year CPI-indexed bonds – semiannually, reopen, fourth-issue – totaling 2.95 billion Turkish liras ($364.1 million).

According to the ministry, the total tender in the second auction amounted to 4.6 billion Turkish liras ($567.7 million), with a 64.1% accepted/tendered rate.

The term rate of 1,519-day government bonds was accepted at 1.43% of the periodic interest rate, while the annual simple and compound interest rates were 2.86% and 2.88%, respectively.

Bills will be settled on Wednesday and mature on June, 18, 2025.

The Treasury will make two more auctions on Tuesday. -