Turkish Wealth Fund Secures $1 Billion in New Eurobond Offering, Attracts $10 Billion in Investor Demand
Istanbul, Türkiye – The Türkiye Varlık Fonu (TVF), the country’s sovereign wealth fund, successfully completed a $1 billion Eurobond issuance, drawing nearly $10 billion in orders from over 250 investors. The transaction marks a significant return for Türkiye to the international Eurobond market, representing the first such offering by a turkish institution in eight years following the Treasury.
The bonds where offered in two tranches – a 5.5-year maturity and a 10-year maturity – under a Reg S format, restricting sales to investors outside the United States.This latest offering builds on the TVF’s debut Eurobond last year, expanding it’s access to global capital markets and signaling renewed investor confidence in the Turkish economy.The proceeds will be used to bolster the fund’s investment portfolio and support strategic projects within Türkiye.Initial price indications were set at 8.375% for the 5.5-year tranche and 7.625% for the 10-year tranche. Though,strong investor demand allowed the TVF to price the bonds at more favorable rates: 7.00% for the 5.5-year maturity and 7.75% for the 10-year maturity. Final pricing resulted in a spread of +50 basis points over comparable Treasury bonds for the 5.5-year tranche and +62.5 basis points for the 10-year tranche.
The Eurobonds will be listed on the Gem market of Euronext Dublin. BBVA, Citi, Emirates NBD, and ING served as joint global coordinators and joint bookrunners for the transaction, while Bank ABC, BofA Securities, FAB, ICBC, Intesa Sanpaolo, JP morgan, SMBC, Société Générale, and Standard Chartered Bank participated as joint bookrunners.
