Turkish Treasury borrows $981M through two auctions

By Gokhan Ergocun </p> <p>ISTANBUL (AA) – The Turkish Treasury has borrowed 5.38 billion Turkish liras ($981.4 million) from domestic markets, according to an official statement Tuesday.</p> <p>The first auction was held for 9-month zero-coupon bonds (reopen, second issuance), amounted to 2.76 billion Turkish liras ($503.4 million), the Treasury and Finance Ministry said in the statement.</p> <p> </p> <p>The government bonds will be settled on Wednesday and mature on Dec. 11, 2019, while the total tender for the bonds was 3.86 billion Turkish liras ($704 million) with a 71.4-percent accepted rate. </p> <p>The interest rate of the 266-day bonds was accepted at a 14.23-percent term rate, as the annual simple and compound interest rates were 19.47 and 19.97 percent, respectively.</p> <p>In a second auction on Tuesday, the Treasury borrowed 2.63 billion Turkish liras ($479.2 million) by issuing five-year CPI-indexed government bonds (semiannually, reopen, third issuance) to be settled on Wednesday and mature on Jan. 10, 2024.</p> <p>The total tender for the bonds was 3.22 billion Turkish liras ($587.3 million), with a 81.5 percent accepted/tendered rate. </p> <p>The ministry said the term rate of 1,757-day bonds was accepted at 1.94 percent, while the annual simple and compound interest rates were 3.89 and 3.92 percent, respectively.</p> <p>According to the ministry's borrowing strategy, the Treasury projected to hold nine bond-auctions and a direct sale of lease certificate in the February-April period to borrow some $6.6 billion from domestic markets.