HomeInfraTurkey raises $2.25bn in first bond deal since February earthquake

Turkey raises $2.25bn in first bond deal since February earthquake

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Turkey has raised $2.25bn in its first international bond deal since last month’s earthquakes killed thousands and ravaged a swath of the country.

The country sold the dollar-denominated debt, which matures in 2029, at a yield of 9.5 per cent, according to a person familiar with the matter.

Turkey will need to spend tens of billions of dollars to rebuild residences, commercial buildings, hospitals, schools and infrastructure in the wake of the February 6 quake, say engineers and international organisations.

Economists expect Turkey to fund the recovery partially through fundraising on debt markets and bilateral deals with international partners.

Turkey has retained its access to international financing despite deep concerns over President Recep Tayyip Erdoğan’s management of the economy.

Inflation exceeded 85 per cent last year as the central bank slashed interest rates in contrast to most other countries which hoisted them higher.

Thursday’s debt deal was first reported by Bloomberg. Deutsche Bank, HSBC and JPMorgan were hired on Wednesday to manage the fundraising.

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