"$2bn 20 year, Lira mart show Turkey is hot
Headlines - Issue: 886 - January 14 2005
The surging investor confidence in Turkey since it was permitted to begin talks on EU membership had two impressive results this week � the republic issued a $2bn 20 year bond that pulled in more than $12bn of orders; and the Turkish lira Eurobond market began with a sudden flurry of deals aimed at European retail investors.
Both events showed that investors now view Turkey as the next big EU convergence play.
Turkey knocked six zeros off the lira on January 1, after bringing to an end decades of soaring inflation. That enabled Clearstream to begin settling bonds in lira, and this week the Republic of Austria, KfW and Rabobank took advantage, with deals led by TD Securities.
The Republic of Turkey began its 2005 funding programme with a bang yesterday (Thursday) evening, raising 40% of its $5bn external borrowing requirement for the year with its biggest ever bond. For the third time running on its dollar issues, it chose Citigroup and Morgan Stanley as leads. "