Halkbank places AT1 bond

The Turkish Halkbank has once again raised funds on the international capital market - in a challenging environment. The bank placed subordinated AT1 Eurobonds with a volume of 210 million US dollars and a coupon of 8.30 percent. The securities belong to the riskier category of bank regulatory capital instruments and are perpetual, but can be called after five years. The issue was accompanied by international banks such as Citi and ICBC Standard Bank. The placement took place during a phase of heightened uncertainty on the financial markets. Rising risk premiums and higher yields on government bonds had recently increased refinancing costs for Turkish issuers. Against this backdrop, the successful issue is seen as a signal that there is still access to international investors - albeit at higher interest rates. Part of a broader financing strategy Alongside the bond, Halkbank announced that it would be launching a global mid-market financing program (GMTN) and a program to raise structured financing (DPR). The aim is to further expand financing opportunities internationally. The bank has gained additional stability through an agreement with the US authorities. A long-standing procedure was suspended as part of an agreement, reducing uncertainty for investors. The bank emphasizes that this has improved access to international markets and sources of financing - an important factor for future issues. The current transaction is part of a series of capital market activities. Halkbank had already issued several AT1 bonds last year - in some cases at higher interest rates, reflecting the changed market conditions. With the new issue, the bank is continuing its strategy of strengthening its capital base and at the same time attracting international investors. The post Halkbank places AT1 bond appeared first on ostwirtschaft.de.