As was informed by Treasury and Finance Minister Albayrak back in mid-January, Turkey is selling samurai bonds as part of its 2019 external financing program. The talks organised by Mizuho, Mitsubishi UFJ, Morgan Stanley and Nomura with the investors in Tokyo, Japan will begin this week according to Dunya Newspaper.
In an effort to pull down the high interest rates ahead of the March 31 local elections, the Turkish Treasury have been preferring to borrow from abroad in an upfront manner. Making lira bonds less available to Turkish banks, the Treasury is trying to stimulate demand for lira based bills which will pulled down the rate of interest. Thus, with the latest on Feb. 14, selling $2 billion of Islamic sukuk bonds, Turkey’s total foreign borrowing have reached $5.4 billion versus the 2019 goal of $8 billion.
The last time Turkey issued a samurai bond was back in December 2017, to a tune of $545 million.