Erdogan has $ 2 billion worth reasons to thank Saudi Arabia!
The Bloomberg agency highlighted the launch of international sovereign bonds by Saudi Arabia and Turkey this week, noting that conditions contributed to the increased demand for bonds offered by Ankara to the markets.
Bloomberg said, that Ankara had taken advantage of the growing appetite of foreign investors for the bonds offered by Riyadh this week, saying investors may have erred in assessing the economic risks of Turkish bonds, which faced severe economic problems in 2018.
Bloomberg explained that Saudi Arabia had given priority to the pricing of new bonds rather than interest in raising a large sum, which gave way to Turkey to present itself to investment funds, which was similar to the Middle East.
Bloomberg stressed that the timing chosen by Ankara was very appropriate, as it successfully sold bonds without any promotion and without prior notice, and sold $ 2 billion worth of bonds maturing in 2026 at an annual interest rate of 7.625%.
Earlier this week, Saudi Arabia’s Finance Ministry announced it had raised $ 7.5 billion from selling two tranche bonds maturing in 2029.
According to Bloomberg, bond applications exceeded $ 27 billion.
