Published: October 2, 2013
Sovereign expected to return to the market this week.
Turkey’s government is making its return to the sukuk market, with a new Islamic bond expected to price and launch this week.
The sovereign, rated BBB- by Fitch and Baa3 by Moody’s, mandated HSBC, Standard Chartered Bank and Qatar’s QInvest to run a benchmark issuance, which could raise US$1bn.
The five-year paper is expected to be priced and launched on Thursday October 3, with the price guideline at 325 basis points over five-year mid-swaps.
As our report in the latest issue of EMEA Finance highlights, this deal and a US$500mn issuance from Coca-Cola İçecek are welcome boosts to Turkey’s dealmaking market after a subdued summer.
Turkey entered the sukuk market in September 2012 with a US$1.5bn deal.