Western Balkans citizens legally resident in EU equal to 14% of region’s population
International Ice Hockey Federation (IIHF) has stripped Belarus of the right to hold the World Championship this year
Alexei Navalny arrested on arrival as he returns home
LONG READ: The oligarch problem
Russia's National Welfare Fund accounts for almost 12% of GDP
Police arresting activists ahead of Saturday’s demonstration in support of Navalny
Biden seeking a five-year extension to START II missile treaty
Russian consumer confidence index drops q/q, y/y in 4Q20
Western Balkans and Ukraine urged to scrutinise coal subsidies
Oligarchs trying to derail Ukraine’s privatisation programme, warns the head of Ukraine’s State Property Fund
Private finance mobilised by development banks up 9% to $175bn in 2019
VISEGRAD BLOG: Central Europe's populists need a new strategy for Biden
OUTLOOK 2021 Lithuania
EBRD says loan to Estonia’s controversial Porto Franco project was never disbursed
Czech MPs pass protectionist food law in violation of EU rules
M&A in Central and Eastern Europe fell 16% in value in 2020, says CMS report
Hungarian vehicle makers hit by supply chain shortage
COVID-19 and Trump’s indifference helped human rights abusers in 2020
OUTLOOK 2021 Poland
OUTLOOK 2021 Slovakia
BRICKS & MORTAR: Rosier future beckons for CEE retailers after year of change and disruption
FDI inflows to CEE down 58% in 1H20 but rebound expected
Albania needs reforms for e-commerce to thrive, says World Bank
BALKAN BLOG: US approach to switch from quick-fix dealmaking to experience and cooperation
Corona-induced slump in global clothing sector dragged down Albania’s 2020 exports
Bosnia's exports in 2020 amounted to BAM10.5bn, trade deficit to BAM6.3bn
Bulgaria's Biodit first company to IPO on new BEAM market
Bulgaria’s government considers gradual easing of COVID-related restrictions
Sofia-based LAUNCHub Ventures holds first close of new fund on €44mn
Spring lockdown caused spike in online transactions in Croatia
ING: Growth in the Balkans: from zero to hero again?
Labour demand down 28% y/y in Croatia in 2020
EBRD investments reach record €11bn in pandemic-struck 2020
OUTLOOK 2021 Moldova
Storming parliaments: New Europe's greatest hits
World Bank revises projection for Moldova’s 2020 GDP decline to 7.2%
Montenegrins say state administration is most corrupt institution
North Macedonia plans to cut personal income tax in IT sector to zero in 2023
Romania government to pursue “ambitious” timetable for justice reforms
OUTLOOK 2021 Romania
OUTLOOK 2021 Slovenia
Slovenia’s opposition files no-confidence motion against Jansa cabinet
Slovenia’s government to release funds to news agency STA after EU pressure
UK Moneyhub picks Slovenia for post-Brexit European base
D’S Damat franchise deals ‘show Turkey’s hard-pressed mall operators becoming their own tenants’
Turkey’s benchmark rate held as concerns over faltering recovery come to fore
Turkish lira breaches HSBC’s stop-loss, Turkey ETF signalling outflows
CAUCASUS BLOG : What can Biden offer the Caucasus and Stans, all but forgotten about by Trump?
Armenia ‘to extend life of its 1970s Metsamor nuclear power plant after 2026’
OUTLOOK 2021 Armenia
COMMENT: Record high debt levels will slow post-coronavirus recovery, threaten some countries' financial stability, says IIF
OUTLOOK 2021 Georgia
Iran’s Khamenei menaces private citizen Trump with image of aircraft shadowing blond golfer
Iran’s technology minister indicted for failing to properly implement internet censorship
No US move to rejoin Iran nuclear deal imminent, say Biden national security nominees
TEHRAN BLOG: Will Biden bet on a quick return to the Iran nuclear deal?
Central Asia vaccination plans underwhelm, but governments look unruffled
Fears of authoritarianism as Kyrgyz populist wins landslide and backing for ‘Khanstitution’
Mongolia's PM quits amid protests over treatment of mother with coronavirus and newborn baby
Mongolia's winter dzud set to be one of most extreme on record says Red Cross
Mongolian coal exports to China paralysed as Beijing demands virus testing of truck drivers
Mongolia fears economic damage as country faces up to its first local transmissions of coronavirus
OUTLOOK 2021 Tajikistan
OUTLOOK 2021 Turkmenistan
Turkmenistan: How the Grinch stole New Year
COMMENT: Uzbekistan is being transformed, but where are the democratic reforms?
Download the pdf version
Akbank, one of Turkey’s largest private lenders, has sold $500mn worth of USD-denominated senior unsecured eurobonds abroad. They are due February 2026 at a fixed coupon rate of 6.80%, the lender said on June 30 in a stock exchange filing.
Turkey’s five-year credit default swaps (CDS), treated as a volatile trading instrument by the markets, stood just below 500bp as of July 1.
Citigroup Global Markets Limited (Citi), Emirates NBD Capital Limited (Emirates NBD), ICBC Standard Bank Plc (ICBC), Merrill Lynch International (BofA), SMBC Nikko Capital Markets Limited (SMBC Nikko) and Standard Chartered Bank (SCB) acted as book-builders in the issuance, to be completed on July 8.
The deal on Akbank’s e RegS/144A benchmark papers comes amid expectations that emerging market investors have finally opened up for corporate and financial institution issuance, Global Capital noted.
In December, Akbank, controlled by Turkish conglomerate Sabanci Holding, received approval from the Capital Markets Board (SPK) to sell up to $2bn worth of papers abroad.
In January, it redeemed $500mn of 5-year eurobonds (US00972BAA70), which paid a 4% coupon.
The lender has $500mn of eurobonds due October 2022 (USM0375YAK49), which pay a 5% coupon.
It also has $500mn worth of 10-year eurobonds due October 2025 (US00971YAF79), which pay a 5.125% coupon.
Moody’s Investors Service sees Akbank at B3/Negative, six notches below investment grade, while Fitch Ratings has it at B+/Negative, four notches below investment grade.
Fitch Ratings rates Turkey at BB-/Stable, three notches below investment grade. Moody’s Rating Services rates Turkey at B1/Negative, four notches below investment grade, while Standard & Poor’s has the country at B+/Stable, also four notches below investment grade.
On July 1, Ukraine (S&P/B/Stable, Fitch/B/Stable, Moody’s/B3/Stable) was also in the market, looking to sell 12-year USD-denominated papers at 7.875%.
Earlier, in June, Belarus (Fitch/B/Stable, S&P/B/Stable, Moody’s/B3/Stable) placed $1.25bn of US dollar-denominated Eurobonds—a five-year tranche worth $500mn at 6.125% and a 10-year tranche amounting to $750mn at 6.375%.
On June 11, Croatia (Fitch/BBB-/Stable, Moody’s/Ba2/Positive, S&P/BBB-/Stable) issued an 11-year, €2bn eurobond with a coupon of 1.5% and a yield of 1.643%.
On June 10, Albania (S&P/B+/Stable, Moody’s/B1/Stable) issued a seven-year eurobond worth €650mn, with a coupon rate of 3.65%.
In April and May, almost all countries in Eastern Europe sold eurobonds. Those that didn’t are preparing for auctions.
On June 20, Bloomberg quoted unnamed people with knowledge of the matter as saying that Turkey Wealth Fund (TVF) was considering a eurobond issuance later this year of at least $2bn and would soon choose around 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.
According to the latest data, Turkey was obliged to refinance a total of $148bn in external debt, excluding obligations to foreign branches and affiliates, in the 12 months ahead as of end-April.
In May and June, there has been an acceleration in Turkish borrowers’ striking loan deals, while Akbank’s eurobond deal may open the way for other issuers, although the cost is high.
Turkish companies have obtained a total of €944mn worth of coronavirus (COVID-19) crisis financing from the European Bank for Reconstruction and Development (EBRD) so far, almost a quarter of the €4bn coronavirus package made available by the development bank.
The World Bank has also been active in providing coronavirus rescue financing to Turkey.
here to continue reading this article
and 5 more for free or purchase
12 months full website access including
the bne Magazine for just $250/year.
Register to read the bne monthly magazine for
Password could contain only
and have 8-20 symbols length.
Please complete your registration by confirming your
A confirmation email has been sent to the email
address you provided.
can't be empty.
No user with
this email address.
Access recovery request has expired, or you are using
the wrong recovery token. Please, try again.
Access recover request has expired.
Please, try again.
To continue viewing our content you need to complete
the registration process.
Please look for an email that was sent to
with the subject line
"Confirmation bne IntelliNews access". This email will have
instructions on how to complete registration
process. Please check in your "Junk" folder in
case this communication was misdirected in your
If you have any questions please contact us at email@example.com
Sorry, but you have used all your free articles fro
this month for bne IntelliNews. Subscribe
to continue reading for only $119 per year.
Your subscription includes:
For the meantime we are also offering a free
digital weekly newspaper to subscribers to
the online package.
Click here for more subscription options,
including to the print version of our
flagship monthly magazine:
Take a trial to our premium daily news
service aimed at professional investors that
covers the 30 countries of emerging
For any other enquiries about our
products or corporate discounts please
contact us at
If you no longer wish to receive
Magazine annual print
Website & Archive
Combined package: web
access & magazine print
Take a trial to our premium daily news service
aimed at professional investors that
covers the 30 countries of emerging Europe: