Turk Eximbank expands flow of foreign investment

By News Center

Türk Eximbank has made a statement saying that the $500 million resource provided by the bank from abroad is the lowest-cost transaction among bond issuances carried out by financial institutions since February 2022.

Thanks to the very strong demand of approximately 3 billion dollars from a wide geography for bond issuance, the coupon rate of the 500 million dollar bond was 7.50 percent, 62.5 basis points below the initial level, while the final return rate was 7.75 percent.

This bond issuance by Turk Eximbank, which has paid the lowest difference to the American Treasury in the last 5 years, is considered a concrete indicator of the confidence in the country's economy by international markets, considering that it is a public institution whose capital belongs entirely to the Ministry of Treasury and Finance.

Demand for the bond transaction was approximately 6 times the issue size from nearly 160 institutional investors from every region around the world, from Europe to America and from the Middle East to Asia.

It has been observed that the interest of long-term investing institutions, especially those located in America, Europe, and Asia, has increased significantly compared to last year. 54 percent of the bond issue was sold to investors in America, 30 percent in Europe, and 15 percent in the Middle East and Asia. 80 percent of the investors were the world's most well-known asset management companies and institutional investors.

In the statement, regarding Turk Eximbank's financing efforts for exporters, "In line with the long-term financing needs of our exporters, efforts continue to obtain resources from transnational financial institutions worth 1.5 billion dollars with a maturity of up to 10 years and cost-effectively, to be completed in the first half of 2024. In addition to these resources, financing opportunities will be increased and diversified to support exports by being active in international capital markets," the bank said.

Türk Eximbank General Manager Ali Güney, whose comments were included in the statement, expressed his satisfaction with starting the year with this overseas bond issuance, which was very successful and met with a very intense demand.

Stating that they aim to increase the cash credit support they will provide to exporters this year to 24 billion dollars with an increase of 22 percent, Güney said, "Access to affordable funds is of great importance in achieving this target. The success of this bond issuance, which has been realized at the lowest cost in the Turkish banking sector since 2022, is attributed to Türk Eximbank." "While confirming Turkey's leading role in export financing, it also demonstrates the trust placed in our country and our bank by international investors."

Türk Eximbank, which obtained 2 billion dollars of resources from international capital markets through bond issues and private borrowing transactions last year, won the "Quasi-Sovereign Awards", one of the respected and prestigious awards of the finance industry, within the scope of "Bonds, Loans & ESG Capital Markets Awards" with its bond issuance at the beginning of 2023. /GRE Bond Deal of the Year" award.