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Türkiye’s Treasury and Finance Ministry achieved its lowest eurobond yield spread in 15 years after pricing a €2 billion ($2.36 billion), 8-year euro-denominated bond at a spread of around MS+242 basis points, according to an official announcement.
The bond, which matures on Mar. 10, 2034, was issued with a coupon rate of 5.15% and a yield of 5.2%, the ministry said.
A lower spread indicates that investors require a smaller premium over market interest rates to lend money, reducing the issuer’s funding cost.
The Treasury said it mandated Deutsche Bank, HSBC, JP Morgan, and Societe Generale on Feb. 3 to manage the issuance.
Investor demand reached approximately €6.5 billion ($7.67 billion), exceeding the issuance size by over three times, with orders placed by around 180 investors, according to the ministry. The level of demand allowed the Treasury to complete the transaction at a historically low spread for a euro-denominated bond.
The transaction also extended Türkiye’s euro-denominated yield curve beyond its previous longest maturity of August 2031, pushing the curve out by roughly 2.5 years to 2034, the ministry said.
According to final allocation data, foreign investors accounted for the majority of demand, with 56% of the bonds placed with investors in the United Kingdom, followed by 24% allocated to other European investors.
Buyers in the United States received 9% of the issuance, while 6% went to investors in the Middle East.
Türkiye-based investors accounted for 4%, and the remaining 1% was allocated to investors in other regions.
With this issuance, Türkiye has raised approximately $5.9 billion from international capital markets so far in 2023, the ministry said.
In 2025, the Treasury secured about $6.27 billion in external financing, including $4.5 billion through U.S. dollar-denominated bonds and €1.5 billion via euro issuances.
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