TEB's bond issue generates unprecedented investor interest
Türk Ekonomi Bankası (TEB) successfully carried out an international bond issuance totaling USD 400 million. The international bond issuance garnered significant attention from over 150 global investors, setting a new record with demand exceeding USD 2.9 billion, surpassing the issue amount by more than 7 times. This transaction marks TEB’s first issuance in the international capital markets and notes the largest oversubscription for any Turkish conventional issuer since January 2020.
ISTANBUL, Jan. 11, 2024 /PRNewswire/ — TEB’s subordinated bond issuance was led by prominent financial institutions, including Abu Dhabi Commercial Bank, Citibank, HSBC, Emirates NBD, BNP Paribas, and Standard Chartered Bank. The yield rate for the issuance, featuring a ten-year maturity and a call option exercisable in the fifth year, was realized at 9,375 percent. The considerable interest shown by international investors in the bond issuance served as a notable indicator of confidence in both the Turkish financial market and TEB, and achieved our goal of internationally diversifying our investor base.
Leblebici: “We take pride in garnering significant interest, a testament to our standing as a strong and reliable bank”
Commenting on TEB’s first subordinated bond issuance, TEB CEO Ümit Leblebici stated: “We received robust demand from foreign investors for our bond issuance. In our debut issuance of subordinated bonds to foreign investors in international capital markets, we take pride in garnering significant interest, a testament to our standing as a strong and reliable bank. We remain committed to steady growth in alignment with our strategy of diversifying the funding structure and expanding medium and long-term borrowing instruments.”
Stating that they convened with international investor companies, Leblebici added, “The USD 400 million Basel III compliant bond issuance executed by our Bank witnessed an unprecedented demand, exceeding USD 2.9 billion and well distributed into foreign investors. The substantial interest exhibited in the transaction is also significant in terms of the confidence placed in both our economy and our Bank. In 2024, marking our 97th anniversary, we will persist in our endeavors to secure medium and long-term and cost-effective funds.”
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