Akbank has successfully tapped the market with the first Eurobond issuance in the Turkish banking sector during the COVID-19 pandemic. It was priced at a yield of 6.80%, raising USD500 million for a 5.5 year maturity. Orderbook was c.3x oversubscribed and reached c.USD 1.5 billion.
Hakan Binbaşgil, CEO, emphasized that the high demand for this first Eurobond issuance during the outbreak is a reflection of Akbank’s expertise in international debt capital markets transactions, successful funding strategy and strong relationships with investors.
Binbaşgil commented: “We are going through a period of uncertainty in global markets, as well as increased volatility and risk perception. These developments have naturally affected investor sentiment; Turkey has been affected by the pandemic along with the rest of the world. However, thanks to the announcement of support packages, easing restrictions and other measures taken, we observe that markets have started to reopen.
We are therefore pleased to have successfully issued the first Eurobond in the Turkish banking sector in this challenging environment. Similar to many other syndicated loan transactions, we have reopened the debt capital markets for issuances out of Turkey. We completed this transaction in an environment of high market volatility, where the orderbook was c.3 times oversubscribed. This strong demand expresses investors’ confidence in the growth potential of Turkey, Turkish Banking sector and Akbank. With our consistent and transparent management, our approach to banking in international standards, and robust balance sheet, we continue to provide resources to support the growth of the Turkish economy and the real sector.”