Turkish treasury raises $2.5 bln in green bond issue

The Treasury and Finance Ministry has said it raised $2.5
billion in a green bond issuance maturing in 2030, Trend reports citing Hurriyet Daily
News.

The ministry earlier this week mandated Bank of America, ING,
J.P. Morgan, and Standard Chartered for the U.S. dollar-denominated
green bond.

“The transaction was finalized with a nominal amount of $2.5
billion. The proceeds of the issue will be transferred to the
Treasury accounts on April 13,” the Treasury said in a
statement.

The seven-year green bond has a coupon rate of 9.125 percent and
a yield of 9.30 percent to investors.

The offering attracted an order book of more than three times
the actual issue size from approximately 200 accounts, the
statement said.

“Some 31 percent of the issue has been sold to investors in the
U.K, 19 percent in Türkiye, 18 percent in the U.S., 16 percent in
the Middle East, 15 percent in other European countries, and 1
percent in other countries.”

This green bond is the Turkish Treasury’s first environmental,
social and governance (ESG) bond issuance in the international
capital markets.

With this transaction, the amount of funds raised from the
international capital markets in 2023 has reached $7.5 billion, the
Treasury said.