BBVA leads landmark transaction for the Republic of Turkiye

BBVA has strengthened its position as one of Turkiye’s leading investment banks, following an outstanding performance in the country’s debt capital markets in 2024.

On September 25th, the Republic of Turkiye completed a landmark bond exchange, swapping short-term bonds for a new 10-year USD benchmark. Leveraging its extensive experience and market expertise, BBVA acted as one of the two Dealer Managers and one of the four Joint Lead Managers for this complex transaction, which is regarded as the most intricate deal ever executed in Turkiye’s debt capital markets.

Turkish Treasury completes a historic transaction

The Turkish Treasury accepted USD 1.855 billion in bond switches for bonds maturing in 2024 and 2025, in addition to USD 1.645 billion in new cash, resulting in a total new issuance size of USD 3.5 billion. The transaction attracted strong demand, with an order book reaching USD 8.35 billion, representing a significant oversubscription level. BBVA successfully achieved a negative new issue premium and secured an optimal distribution across a diverse and high-quality investor base.

This transaction marks BBVA’s second consecutive 10-year USD benchmark for the Turkish Treasury, following its February 2024 issuance, which was one of the country’s most significant trades in recent years. In that deal, BBVA helped generate the largest order book ever for a Turkish issuer, with demand peaking at USD 13.5 billion. With these two transactions, BBVA has raised USD 6.5bn for the Republic this year.

BBVA's leadership in Turkiye

In addition to the landmark trades for the Turkish Treasury, BBVA has led several major transactions in Turkiye throughout 2024:

• In January, BBVA was a joint lead manager for Turkiye Eximbank’s February 2028 USD 500mn benchmark transactions which has garnered a very healthy oversubscription level
• In February, BBVA acted as Global Coordinator and Joint Lead Manager for a USD 500 million five-year inaugural bond issued by the Turkish Wealth Fund (TWF), which was oversubscribed by more than 14 times, with total demand reaching USD 7.2 billion. This was the highest ever over-subscription level reached by a Turkish issuer.
• In the same month, BBVA served as Joint Lead Manager for a USD 500 million subordinated Tier 2 transaction for Garanti BBVA.
• In July, BBVA was a Joint Lead Manager for a USD 750 million five-year, again inaugural issuance for Eregli Demir Celik.

BBVA has also led several private placements in both USD and Turkish lira for financial institutions, demonstrating its ability to provide tailored solutions for diverse financing needs.

Long-term commitment to Turkiye

These high-profile transactions underline BBVA’s leadership in Turkiye’s debt capital markets and reflect the bank’s strategic commitment to the country and the wider region. BBVA’s success in Turkiye is part of its broader strategy in Emerging Markets, supported by a deep understanding of the local market and reinforced by its local presence through Garanti BBVA, Turkiye’s second-largest private bank.