Halkbank Issues AT1 Bond

Turkey’s Halkbank has once again raised funds on the international capital market—despite challenging market conditions. The bank issued subordinated AT1 Eurobonds totaling $210 million with a coupon rate of 8.30 percent.

The securities belong to the higher-risk category of regulatory capital instruments and are perpetual, though they can be called after five years. The issuance was managed by international banks such as Citi and ICBC Standard Bank.

The placement took place during a period of heightened uncertainty in 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 issuance is seen as a signal that access to international investors remains—albeit at higher interest rates.

Part of a broader financing strategy

In parallel with the bond issuance, Halkbank announced plans to launch a Global Medium-Term Note (GMTN) program as well as a program for structured financing (DPR). The aim is to further expand financing options internationally.

The bank gains additional stability through an agreement with U.S. authorities. A long-running legal proceeding was suspended as part of the agreement, thereby reducing uncertainty for investors. The bank emphasizes that this has improved access to international markets and financing sources—an important factor for future issuances.

The current transaction is part of a series of capital market activities. Last year, Halkbank had already issued several AT1 bonds—some at higher interest rates, reflecting the changed market conditions.

With this new issuance, the bank is continuing its strategy of strengthening its capital base while appealing to international investors.