Turkey is preparing to return to world bond markets for the first time since the collapse of the pound, according to Bloomberg.
The state has selected banks, including HSBC Holdings, to handle an Islamic debt sale known as Sukuk, which could occur this month, said people who declined to be named because the details are not public. The sale could be used to refinance debt of about $ 2 billion ending this month, they said.
No decision has been made and Turkish officials may postpone the deal if market conditions deteriorate, citizens said.
The Turkish Finance Ministry declined to comment. An HSBC spokesman also declined to comment when contacted by Bloomberg.
The last time Turkey turned to foreign investors to sell bonds was in September, before President Recep Tayyip Erdogan’s insistence on lowering interest rates despite high inflation led the currency to a standstill. The pound closed the year more than 40% weaker, while the debt in dollars of the country caused investors a loss of 5% in 2021, according to Bloomberg indices.
The potential sale would come amid a lack of bids from useless rating issuers, as accelerating inflation and the prospect of higher interest rates in developed countries reduce the appetite for more risky assets.
Pakistan and Paraguay alone have emerged from emerging markets so far this year, raising a total of $ 1.5 billion, according to data compiled by Bloomberg. This is the smallest volume at least since 2011, the data showed.
Petros Kranias
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
