Turkey Sells $1.5 Billion of Bonds in First Offering of 2015 - Bloomberg

Turkey Sells $1.5 Billion of Bonds in First Offering of 2015 - Bloomberg:



"Turkey sold its first international bond of 2015, paying less than higher-rated Brazil and South Africa as the country’s borrowing costs tumble to near the lowest in 18 months.



The government issued $1.5 billion more of securities maturing in April 2043 to yield 4.95 percent, or 2.42 percentage points more than similar-maturity U.S. treasuries, according to a person familiar with the offering who asked not to be identified because they weren’t authorized to speak publicly. The country’s dollar bonds yield an average 4.47 percent, according to JPMorgan Chase & Co. data. 




Turkish dollar debt has returned 18 percent over the past year, more than triple the emerging-market average, in part on expectations declining oil prices will help narrow the nation’s current-account deficit and further stem inflation that fell to 8.9 percent in December. Turkey is taking advantage of favorable borrowing conditions to sell bonds, including a lira that’s trading within 4 percent of last month’s record and the lowest 30-year U.S. Treasury yields in over two years, according to Cristian Maggio, a strategist at Toronto Dominion in London."



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