USD-Denominated Sustainable Bond Issuance by the Ministry of Treasury and Finance

Within the scope of the external borrowing program, the Ministry of Treasury and Finance carried out a USD-denominated 10-year ESG sustainable bond issuance amounting to 1.5 billion dollars. According to the ministry's statement, 3 times the demand was collected for the issuance, and 25 percent of the bond was allocated to investors in Turkey.

Details of the Issuance and Demand Ratio

Within the scope of the external borrowing operation carried out by the Ministry of Treasury and Finance, a 10-year ESG sustainable bond issuance of 1.5 billion dollars was made in US dollars. According to the ministry's statements, 3 times the demand came from the market for the aforementioned issuance.

It was reported that the issuance amount, for which BNP Paribas, Citibank, ING Bank, and J.P. Morgan were authorized, will be transferred to the ministry accounts on September 30. The coupon rate of the sustainable bond materialized at 7.500 percent, and the yield rate at 7.650 percent.

Investor Distribution and Allocation Ratios

As a result of the realized issuance, the geographical distribution of the bonds became clear. 32 percent of the bond was allocated to investors in the United Kingdom, 30 percent in the USA, 25 percent in Turkey, 9 percent in other European countries, and 4 percent in other countries.

The 25 percent allocation made to investors in Turkey pointed to one of the highest levels recorded in recent years.

Market Developments and Financing Amount

With the start of sales in initial transactions following the issuance, the bond price traded 1 dollar lower. Experts evaluated the coincidence of the issuance with the period of increase in 10-year US Treasury yields as unfortunate.

With this bond issuance, the total financing amount provided from international capital markets within the year 2026 reached 12.2 billion dollars.