BLBG: Turkey Offers 30-Year Dollar Bonds; Yield Said to Be About 5%
Turkey is selling its longest-dated dollar bonds in two years to take advantage of falling yields.
Citigroup Inc., Credit Suisse Group AG and JPMorgan Chase & Co. are arranging the sale of 30-year dollar bonds, the Treasury said in a statement today.
The notes may yield about 5 percent, according to information from person with knowledge of the offering, who asked not to be identified because the information isn’t public.
The rate on debt due in January 2041 has fallen 34 basis points this month to 4.83 percent today. That compares with 6.61 percent at the end of January 2011, according to data compiled by Bloomberg.
“We expect the yield to fall below 5 percent because of interest in developing country bonds and search for high yields,” Tufan Comert, a strategist at Garanti Securites in Istanbul, wrote in an e-mailed note today.
Turkey raised $1.5 billion in the sale of 10-year dollar bonds in January at a record low borrowing cost of 3.473 percent, according to the Treasury.
To contact the reporter on this story: Selcuk Gokoluk in Istanbul at sgokoluk@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
