The Eurobond issuance successfully completed by TWF was carried out in line with the planned timetable.
The transaction also reflected the positive perception created among international investors by Türkiye’s political stability and sound economic environment. Türkiye’s strong macroeconomic fundamentals and reform commitment encouraged investors to take long-term positions, while TWF’s issuances became a concrete demonstration of this confidence. The issuance was executed fully in accordance with the planned schedule.
Türkiye Wealth Fund (TWF) completed its new $1 billion Eurobond issuance with record-breaking investor demand. The transaction was executed in Reg S format, targeting investors outside the United States, and was offered in two tranches with maturities of 5.5 years and 10 years.
Following the successful debut issuance last year, TWF launched a new Eurobond offering with a newly added 10-year tranche, attracting a record level investor demand of nearly $10 billion. Thanks to the robust investor demand, the transaction witnessed a tightening of 62.5 basis points in both tranches, down from Initial Price Thoughts (IPTs) of 7.625% for the 5.5-year tranche and 8.375% for the 10-year tranche. At closing, the final yields were set at 7.00% for the 5.5-year tranche and 7.75% for the 10-year tranche. The final pricing was achieved at exceptionally tight spreads over U.S. Treasuries, with +50 basis points for the 5.5-year and +62.5 basis points for the 10-year maturities.
With this issuance, TWF became the first Turkish institution in the past eight years excluding the Turkish Treasury, to issue a 10-year Eurobond, marking a significant milestone. Moreover, TWF achieved another first by becoming the first Turkish issuer to offer a 10-year Eurobond under dual-tranche structure. Thus, the transaction marked a pivotal achievement not only in terms of funding, but also in diversifying Türkiye’s issuance capacity in international capital markets.
More than 250 investors comprising several of the world’s top-tier asset managers and financial institutions participated in the transaction with exceptional interest. The orderbook showed a well-balanced distribution of high-quality investors from various geographies. Long-term funds, insurance companies, and leading global asset management firms were strongly represented in the transaction. Accordingly, the issuance stood out not only for its volume, but also for its top-quality investor base, securing its place among TWF’s notable achievements.
Following its successful Eurobond and Sukuk issuances in 2024, TWF further solidified its position as an established and trusted issuer in international capital markets with this new transaction. The strong investor interest shown in a short period of time once again confirmed the confidence in TWF’s long-term strategies.
With this step, TWF fulfilled its commitment to establishing a yield curve for investors by reintroducing 10-year instruments to the Turkish market with a pioneering role. In doing so, TWF not only expanded its own funding base, but also established an important benchmark for Turkish corporate issuers. This transaction contributed to the deepening of Türkiye’s yield curve in international capital markets.
The Eurobond issuance will be listed on Euronext Dublin’s Global Exchange Market (GEM). In the transaction, BBVA, Citi, Emirates NBD, and ING acted as joint global coordinators and joint bookrunners, while Bank ABC, BofA, FAB, ICBC, Intesa Sanpaolo, JP Morgan, SMBC, Société Générale and Standard Chartered participated as a joint bookrunner.
The transaction, which was successfully executed and demonstrated solid performance in the secondary market, once again underscored TWF’s pioneering role. At a time when issuers in Türkiye remain cautious, TWF has successfully completed the issuance, reinforcing its strong and strategic presence in the international capital markets.
