Baker McKenzie advises Türkiye Wealth Fund on its USD 1 billion Eurobond issuance

Leading global law firm, Baker McKenzie, has advised the Turkish Sovereign Wealth Fund, Türkiye Wealth Fund (TWF) on its new USD 1 billion Eurobond issuance, which completed with record-breaking 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, on which baker McKenzie advised, TWF launched a new Eurobond offering with a newly added 10-year tranche, attracting a record level investor demand of nearly $10 billion. 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.

Commenting on the deal, Structured Capital Markets Partner, James Tanner, who led the Baker McKenzie team, said: "We are pleased to have once again supported the Türkiye Wealth Fund team. This deal not only reinforces TWF's position as a pioneering issuer in international capital markets, but also sets a new benchmark for Turkish corporates by reintroducing 10-year instruments to the market. This transaction also highlights the strength and seamless collaboration of Baker McKenzie's cross-border teams in London and Istanbul, delivering strategic legal counsel on complex capital markets matters."

The Joint Global Coordinators and Joint Bookrunners included: Banco Bilbao Vizcaya Argentaria, S.A., Citigroup Global Markets Limited, Emirates NBD Bank PJSC, and ING Bank N.V.

The Joint Bookrunners included: Banco Bilbao Vizcaya Argentaria, S.A., Citigroup Global Markets Limited, Emirates NBD Bank PJSC, ING Bank N.V., Arab Banking Corporation (B.S.C.), First Abu Dhabi Bank PJSC, ICBC Standard Bank plc, Intesa Sanpaolo S.p.A., London Branch, J.P. Morgan Securities plc, Merrill Lynch International, SMBC Bank International plc, Société Générale, and Standard Chartered Bank.