Turkey

Currency volatility and political upheaval are proving difficult hurdles to clear for Turkish companies wanting to graduate from domestic loan markets to the international capital markets. Elly Whittaker reports.

Competition is becoming much fiercer in the Turkish banking sector. After years of rampant loan growth in many markets, banks will have to fight much harder to find new customers and bigger margins in the future.

Turkish banks are looking to mortgage-backed covered bonds to close asset and liability mismatches and reduce borrowing costs. In the next few years, the asset class will become a cornerstone of their funding plans. Tyler Davies reports.

Political uncertainty has provided a volatile backdrop for investors in Turkey over the last year, making the growth in its economy all the more impressive. But as Philip Moore reports, the country’s economic resilience will be severely tested this year.

Buttressed by vibrant domestic demand and supported by weak global commodity prices, Turkey’s economy continues to post solid growth. In this interview, treasury undersecretary Cavit Dagdas explains how Turkey’s medium term programme (MTP) will underpin continued growth.

The Republic of Turkey has set roadshow dates for an outing in the sukuk market, edging closer to finishing off its $4.5bn external funding requirement for this year.

Moody’s has talked up the positive credit aspects of Turkish covered bonds in an in-depth report which it published on Thursday. However the agency says Turkish covered bonds remain susceptible to tail event risks such as the political environment — a point which locals dispute.

Turkiye IS Bankasi’s consent solicitation — aimed at converting its disqualified tier two bond into a Basel III compliant instrument — has angered some investors, who feel Isbank is offering too little. But the bank is right to strong-arm investors who were aware of the risks they were taking when they bought the deal.

Turkiye IS Bankasi is offering investors in its disqualified tier two bond 50bp to agree to add Basel III compliant features to the documentation.

The first publicly sold green bond from the CEEMEA region received such a strong reception this week that other borrowers may now take a closer look at the product, despite the EM pipeline for this kind of deal being bare. Francesca Young reports.

United Arab Bank — Isbank — LSL Property — Nokian

Turkiye Sinai Kalkinma Bankasi (TSKB) has tightened price guidance for the first ever green bond from CEEMEA and demand seems strong enough that it could even be printed inside the development bank’s senior conventional curve.