Turkey raises $3.5 billion in sale of Eurobonds

Turkey’s government sold $3.5 billion of Eurobonds maturing in 2026 and 2031, Dünya newspaper reported on Wednesday.

The 2026 bond will provide annual returns of 4.9 percent for investors, Dünya said. The 10-year issue will earn them 5.95 percent annually, it said. The sale was split equally into tranches of $1.75 billion.

The Turkish Treasury and Finance Ministry said on Tuesday that it hired Citigroup, Goldman Sachs and JPMorgan to manage the issue. The government is seeking to take advantage of growing appetite among investors for riskier assets such as emerging market bonds.

Turkey last sold such bonds in late November, when investors purchased $2.25 billion of the 2031 debt for an annual return of 6 percent. It also sold $2.5 billion of 2025 bonds in October at an annual rate of 6.4 percent.

The cost of borrowing for Turkey on international markets has declined after the central bank hiked interest rates sharply in November and December to reverse a slump in the lira, which had dropped to a record low on Nov. 6, and to rein in inflation.

The central bank’s benchmark rate stands at 17 percent compared with 10.25 percent at the start of November. The bank is next due to meet on interest rates on Thursday. Consumer price inflation in Turkey is running at an annual 14.6 percent.