The first Eurobond issuance in 2020 with a record high demand is by Türkiye's privately owned development and investment bank TSKB
The Industrial Development Bank of Türkiye (TSKB), executed 400 million dollars of Eurobond issuance with 5-year maturity and fixed interest payment.
By giving information about the deal that attracted 10 times demand, Suat İnce, the CEO of TSKB, stated: “We attracted an investor demand of approximately 300 reputable accounts around the globe. This issuance is a strong indication of the confidence on our country and TSKB. I believe this successful issuance in our 70th year of foundation would lead the market and motivate Turkish banking sector for new issuances.”
The Industrial Development Bank of Türkiye (TSKB), issued 2020’s first Eurobond out of Türkiye. TSKB’s 400 million-dollar 5-year Eurobond transaction attracted 10 times of a demand, globally. Citi, ING, and Standard Chartered were Global Coordinators of the deal while BNP Paribas, Commerzbank, Bank ABC and SMBC Nikko were joint bookrunners. The Eurobond was quoted to Irish Stock Exchange. TSKB management conducted a roadshow in London, New York and Boston across three days, as part of Bank’s first foray into the 144A format.
The demand has grown with the strong momentum and we received orders from approximately 300 accounts, which 45% of them are new names for TSKB. With the support of strong and increasing investor demand during the pricing day, the pricing compressed by more than 50 bps and the deal was launched at a yield of 6.125%.
TSKB re-opened the silent market for Turkish banks after the last issuance in March 2019. CEO of the Bank, Mr. Suat İnce says: “We have attracted a significant and granular investor demand which enables us to diversify our investor base with US investors contributing to one third of allocations. The orderbook has progressed with an accelerating demand throughout the book building process. The strong final order of 10 times oversubscription is the sign of trust in Türkiye and TSKB. We believe that 2020 will be a better year for Türkiye and Turkish financial sector. The improvement in Turkish economy will continue and support the investor appetite. Our successful transaction will encourage other Turkish issuers waiting to enter international capital markets in the near future.”
