Turkiye Garanti Bankasi seeks $125m eurobond issuance

Turkiye Garanti Bankasi AS has applied for a $125 million eurobond issuance, according to a filing seen by Reuters.

The Istanbul-based bank, majority-owned by Spain’s BBVA, did not disclose further terms, including maturity or coupon rate. Eurobond issuance activity in Turkey has accelerated in recent months as lenders seek to secure foreign currency funding amid elevated domestic interest rates and lira depreciation.

Regional peers including Isbank and Akbank have also raised funds via eurobonds this year, reflecting broader efforts to bolster liquidity and refinance maturing debt. The move follows a series of monetary tightening steps by the Central Bank of the Republic of Turkey to stabilize inflation, which remains near two-decade highs.

Garanti Bankasi’s application does not guarantee completion of the issuance, as terms and market conditions may affect execution. Proceeds are expected to be used for general corporate purposes, including refinancing existing obligations or supporting growth initiatives.

The bank, one of Turkey’s largest private lenders by assets, reported a 1.2 trillion lira net profit in 2023, up 132% year-over-year, driven by higher net interest margins despite economic headwinds.