Tier 2 Eurobond (Subdebt) 

Since 2017, Akbank has issued 2 Tier 2 eurobonds of USD 900 million.

• March 2017 – 5 year. 10NC5, Basel III, USD 500 million Tier 2:
• Basel III compliant
• Debut subordinated bond offering by Akbank in 2017
• Akbank paved the way for subsequent issuances of the peers in 2017 and pioneered the Turkish banking sector once again)
• The final book attracted around US$2bn from 180 investors indicating a 4x oversubscription albeit elevated political risks triggered by national referendum
• Tightest Senior vs. Tier 2 spread differential at issue in Turkey as of transaction date
• Largest order book for a Turkish Basel III compliant Tier 2 Bond as of transaction date
• First conventional subordinated bank-capital bond issuance out of Turkey since April 2016
• February 2018 – 5 year,10 NC5, Basel III, USD 400million Tier 2:
• The First Turkish Lira-Denominated Eurobond in International Capital Markets
• Lowest Basel III compliant T2 spread to mid-swaps ever recorded in Turkey
• 2nd lowest coupon and re-offer yield ever for a Basel III compliant Turkish T2
• 2nd lowest spread to Senior for a Basel III compliant Turkish T2
• Successfully priced transaction amid volatile market conditions and geopolitical noise during live execution, at minimal New Issue Premium
• ~90 investors