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10 October 2019
BUSINESS

Turkey sovereign wealth fund plans debut bond after seeking credit rating

The plans come as the fund, which borrowed EUR 1 billion ($1.1 billion) from international lenders earlier this year, gets ready to boost investments aimed at spurring economic growth.

BLOOMBERG/KEREM UZEL


Turkey’s sovereign wealth fund plans to tap international bond markets next year once the quality of its debt has been assessed by global ratings companies, reported Bloomberg.

Turkiye Varlik Fonu Yonetimi will first complete its financial reports with the help of an international consultancy firm and the bond sale is targeted for the first half of 2020.

The sovereign fund will invest in the country’s troubled energy industry, as well as in the petrochemicals and mining sectors. It also pledged to buy a third of an unfinished government project for TRL 1.67 billion ($285 million) to create a finance centre in Istanbul.

Zafer Sonmez, the Chief Executive Officer Turkiye Varlik Fonu Yonetimi, said that the fund would prepare a comprehensive bond-issuance programme in the last quarter of this year.

The fund was founded in 2016 to safeguard what was estimated to be $200 billion worth of assets and spur large-scale investments in various industries. It holds a number of assets taken over from Turkey’s Treasury, including stakes in state lenders Turkiye Halk Bankasi and TC Ziraat Bankasi.

The Turkish fund also owns stakes in Turkish Airlines, the country’s biggest telecommunications firm and the Borsa Istanbul.


RELATED STORIES: TURKIYE VARLIK FONU YONETIMI SOVEREIGN WEALTH FUND

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