Turkey

Vakifbank’s debt euro Turkish covered bond is good for investors, good for emerging markets borrowers and good for the global economy. But the deal would probably never of happened without the intervention of the European Central Bank.

Books for Turkiye Cumhuriyeti Ziraat Bankasi’s $500m bond closed with books over $2bn on Monday and the bank paying only a 10bp new issue premium for the note, according to a lead manager.

Türkiye Vakiflar Bankasi (Vakifbank) brought a slew of new faces to its investor base when it issued Turkey’s first publicly syndicated euro benchmark covered bond — at an extremely low cost of funding.

Türkiye Vakiflar Bankasi (Vakifbank) brought a load of new faces to its investor base when it issued Turkey’s first publicly syndicated euro benchmark covered bond — at an extremely low cost of funding.

Books for Turkiye Cumhuriyeti Ziraat Bankasi were at $1bn before the US open on Monday for a five year senior unsecured bond.

Turkey's Dogus Holding is talking to banks about a loan of $400m, according to three bankers. A deal would closely follow one from Borusan Holding, which signed a loan earlier this month that was snubbed by international lenders.

Turkiye Vakiflar Bankasi (Vakifbank) will open books next week on its inaugural covered bond, according to a official at the bank.

Vakifbank has bucked the trend in Turkish bank loan refinancing. Its latest $920m-equivalent loan raised a similar amount of dollars as last year despite its compatriots enduring falling commitments from lenders in the currency.

Favourable funding conditions should pave the way for an increasing amount of Turkish mortgage backed covered bond supply over the next few months, said Moody’s. Covered bonds will reduce Turkish banks’ asset-liability funding mismatch and help diversify their funding, the agency said.

The latest Turkish corporate loan for Borusan Holding may have failed to attract international banks, but there are more deals in the pipeline, bankers say.

Alternatifbank’s new tier two note rallied a further 100bp this week after an execution strategy which saw the leads revise pricing by 100bp, seeming to vindicate criticism from rival bankers for starting pricing too wide.

Poland this week tackled head on the ghosts of bonds past and has reopened the ill-fated 2036 euro note it printed in January.