How long can Turkey’s DCM recovery hold?
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How long can Turkey’s DCM recovery hold?

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Recently, investors have welcomed Turkish USD debt with open arms. As 2024 approaches, prospective borrowers will be hoping that the renewed interest can last.

There is nothing like ending the year on a high. The last few weeks of 2023 have seen buzzing interest in the Republic of Türkiye from international investors – a very different dynamic to what was entrenched as recently as six months ago. Then, most international investors were steering clear of any investment in the inflation-ridden market.

In response, Turkish borrowers across sovereign supranational and agency (SSA), financial institutions (FIG) and corporate markets have rushed to issue and have been met by oversubscribed demand and vastly improved pricing.

On November 7, Turkey issued a $2.5 billion five-year sukuk with an 8.5% profit rate to meet its $10 billion international funding target.

The orderbook was three times subscribed, reaching more than $7 billion. The final deal saw an allocation including investors in the Middle East (45%), UK (25%), US (20%), Turkey (4%) and elsewhere.

We’re seeing order flows coming back from the higher-quality, larger asset managers and buy-and-hold investors with big tickets
Karim Elzein, Societe Generale

Turkey is a regular issuer in the sukuk market and has been able to secure better value by tapping both conventional and Islamic funding sources.



Lucy joined Euromoney in January 2023 as a reporter. She previously worked for sister publication IFLR covering all things financial regulation in EMEA, including crypto, ESG, bonds, ECM, M&A, restructuring and insolvency. Before this, she interned at the FT’s Investors’ Chronicle after finishing a Classics degree at Oxford University.
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