Turkey is selling its longest-dated dollar bonds in two years to take advantage of falling yields.
The offer is for $1.5 billion in notes maturing April 16, 2043 at a yield of 4.95 percent, according to information from a person with knowledge of the offering, who asked not to be identified because the information isn’t public.
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 yield on bonds maturing in January 2041, Turkey’s longest-maturity debt before today’s offer, has fallen 34 basis points this month to 4.83 percent today. That compares with a yield of 6.61 percent at the end of January 2011, according to data compiled by Bloomberg.
‘Interest in developing country bonds and search for high yields’’ is driving the cost for Turkish borrowing lower, Tufan Comert, a strategist at Garanti Securites in Istanbul, wrote in an e-mailed note today.
Mexico, Ukraine and Lebanon were among other countries seeking to take advantage of falling costs by selling international debt today. Developing government yields plunged to an average 4.56 percent late yesterday from 4.84 percent on April 1, the largest proportional five-day decline since December 2008, according to JPMorgan Chase & Co.’s EMBI Global Diversified Index.
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.
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