Amount: $600m Reg S/144A senior unsecured sustainability
Maturity: 2 March, 2026
Issue/reoffer price: 99.445
Spread at reoffer: 509bp over US Treasuries
Launched: Tuesday, January 26
Payment date:February 2
Joint books:BNP Paribas, Citi, HSBC, ICBC Standard Bank, JP Morgan, Mizuho
We printed at 5.5%. The sovereign’s five year was trading at 4.6%, so it’s 90bp over the sovereign, flat to where we saw fair value. Other Turkish issuers, like TSKB and Yapi Kredi, have all been printing flat to the curve — TSKB was arguably inside — so this is very much in line with that. The issuer was initially targeting $500m, but the pricing was right and the book was good, so they took a slightly bigger deal.
Everything is very tight just now. 0bp‑5bp is the standard new issue premium; 5bp-10bp is for those weaker names that you wouldn’t buy if the market wasn’t so hot.
The whole Turkish banking sector is much tighter. The yields are down 20bp-40bp across the sector, while the sovereign curve is 25bp to 40bp wider, so historically, this is quite a competitive level versus the sovereign for Ziraat bank, but it’s really just in line with the sector.