TSKB issues USD 350 million Eurobond

17 January 2018
- 3 min Read

The Industrial Development Bank of Turkey (TSKB) issued a USD 350 million 5-year fixed-interest Eurobond in international markets. The issuance was three times oversubscribed, with the total order book exceeding USD 1.1 billion in total at closing.

More than 135 investors, chiefly from the UK, Switzerland, Germany, the United States and Central Asia, showed interest in the issuance. For 40% of these investors, it was the first time they engaged in TSKB's bond issuance. Initial pricing was announced at MS+340 bp and completed at MS+325 bp.

TSKB's Eurobond issuance was not only among the first in 2018 together with the successful bond issuance by the Treasury Undersecretariat of the Republic of Turkey, but the spread was also the lowest that TSKB had ever achieved in a Eurobond transaction.

BNP Paribas, Commerzbank and ING Bank were global coordinators for the transaction, with ABC Bank, SMBC Nikko, Societe Generale and Unicredit Bank being the joint lead managers.

"The high demand in our issuance stands as a strong indication of the confidence in the national economy and the banking sector, as well as the strength of our Bank"

Commenting on the issuance, the CEO of TSKB, Suat İnce, said "our previous Eurobond issuances and innovative products such as the Subordinated Sustainable Bond and the Sustainable/Green Bond attracted a great deal of demand in international markets. Our recent Eurobond issuance also attractive massive investor demand. We believe such a high level of demand reflects the level of confidence in our country’s economy and its banking sector, as well as the strength of our Bank. Based on such confidence, we believe the Turkish economy will maintain its positive course in 2018 and our Bank will fulfill all of its goals, as it had last year. In the coming period, we will continue to strengthen our funding structure and exponentially increase the support we extend to the country's sustainable development through both the funding we will obtain from development finance institutions under various themes and the bond issuances and the other types of borrowing which we will be involved with in international markets."