VTB Capital Plc have successfully completed a TL 300 million three year debut domestic bond offering in Turkey last week on April 20th . The bond carries a coupon of 11.28% paid semi-annually and final maturity of 17 April 2015. The transaction carries a significant importance as it is the first time a foreign borrower is tapping the domestic bond markets in Turkey in local currency in the back end of the domestic corporate bond yield curve which to date has only been accessed by only one other local issuer. The transaction is expected to set the precedence for other international borrowers to explore opportunities in the Turkish domestic bond markets offering different credit profiles to domestic investors on the same Turkish Lira rate curve .The debut transaction will have a positive impact in the development of Turkish Capital Markets and the governments aim of making Istanbul an international financial center stated Fokus Yatirim Holding, the sole advisor to VTB Capital Plc in the issue. VTB's landmark transaction was done through Garanti Bank's agency.
Fokus Yatirim Holding ( www.fokusholding.com ) is an asset management and advisory services firm based in Istanbul, Turkey founded by Messrs Kubilay Cinemre, Uzay Kozak and Faruk Isik.
The yield on the country’s two-year benchmark government bonds was 9.45 percent at the close in Istanbul yesterday.
VTB Capital Plc, the investment-banking arm of VTB Group that sold the three-year bonds, did so at a yield of 11.28 percent, the group said in an e-mailed statement from Moscow on April 23. The sale was the largest corporate lira bond sale on the domestic bond market for a period of three years that wasn’t at a floating rate, Cinemre said.
Akbank TAS, the Turkish bank part-owned by Citigroup Inc., sold 390 million liras of three-year floating rate bonds in January.
“If Turkey really wants to be a global financial center, it needs to have a diverse capital market,” Cinemre said.
Fokus specializes in advisory and asset management services. Cinemre owns the company with Faruk Isik, formerly chairman of Bank of America in Turkey, and Uzay Kozak, ex-chief executive of the Turkish unit of Lehman Brothers Holdings Inc.