Turkey

Turkey has returned to the market with a euro trade as it looks to re-engage with investors and refresh its “stale” curve.

Tensions in the GCC are rattling the buyside as both bank and non-bank investors wait for clarity over how the rift between Qatar and other regional states will develop. In the broader CEEMEA debt market, investors are eyeing Turkey’s new euro trade as an opportunity to find some juice in the low yield environment, and anticipating the dual tranche offering from Côte d’Ivoire on Thursday.

Republic of Turkey has turned to euros for its second trade since its constitutional referendum on April 16, as Yapi Kredi markets a lira denominated Eurobond.

Garanti Bank is expected to issue the first green mortgage-backed Turkish covered bond, which will be privately placed with the International Financial Corporation (IFC) and certified by a third party.

The Islamic arm of Turkey's Ziraat Bank has signed a $236m one year Murabaha syndicated loan with 13 banks, according to a banker on the deal.

Mavi Jeans, the Turkish maker of designer jeans, has published the prospectus for what could be the largest Istanbul IPO for four years, according to Dealogic.

Turkish legislation has been in place for years and six borrowers have set up covered bond programmes, but so far supply has proved fleeting. Nevertheless, delegates at the CEE Covered Bond Forum in London heard this week that the challenges that held the market back are likely to disappear soon.

Malaysia Airports Holdings is looking to revise covenants on a €500m loan from 2015 taken for the acquisition of Istanbul Sabiha Gökçen (ISG) International Airport.

On Wednesday night, the vibrant trading in the equity blocks market continued with several large deals from Turkey and the UK.

Vakifbank took advantage of seemingly insatiable demand for Turkish bank paper to raise $500m of five year senior funding on Tuesday.

Vakifbank has opened books on a drive-by five year senior trade as Turkish financial supply trickles into the primary market.

Garanti Bank on Tuesday raised $750m with the tightest priced Turkish tier two on record which was testament to the level of comfort investors now have with the product, according to bankers leading the transaction who conceded that the global credit rally had also helped.