Government Debt Securities (GDS) issued by Under secretariat of Treasury guarantee a certain income if you held till the end of due date. GDSs with less than 1 year of due date are defined as Treasury Bill and GDSs with 1 year or more due date are defined as State Bond.
Trading gains and interest incomes acquired over Government Debt Securities (GDS) issued after 01.01.2006 are subject to 10 % withholding tax and when interest rates rise, enables income advantage in proportion to other investment instruments with same due dates.
- You can buy and sell TRY payable Treasury Bill and GovernmentBond from the price determined by our Bank according to market conditions via Internet and Telephone Branch during 24 hours (you can have your operations done to English speaking agents by dialing 99) or you can buy or sell from all our branches within office hours. You can have your Treasury Bill and State Bond buying operations as nominally minimum100 TRY, nominal 10 TRY and multiples, selling operations nominal 10 TRY and multiples..
- You can participate in bill and bond tenders through our Bank initiated by Undersecretariat of Treasury.
- Participation request should not be less than amount certified by Undersecretariat of Treasury.
- During your request you are charged a fixed amount handling fee.
- Type-B Liquid Fund (801) or Type-B Short-Term Bills and Bonds Fund (808) meeting tender price or bill or bond that will be redeemed at tender date; in the absence of these, free balance of your investment or checking account or available balance of your Overdraft Account will be blocked.
- According to amount of your request, tender council amount of cash will be blocked to your investment account in case of acceptance.
Bonds issued by Undersecretariat of Treasury in domestic market in foreign currency are called Government Debt Securities in Foreign Currency. Capital and coupon payments are made in foreign currency they are issued. You can buy and sell Foreign currency bonds and Bonds indexed to foreign currency via Internet and Telephone Branch during 24 hours (you can have your operations done to English speaking agents by dialing 99) or you can buy or sell from all our branches within office hours.
Bonds issued by Undersecretariat of Treasury in domestic market indexed to a foreign currency are called Government Debt Securities Indexed to Foreign Currency. Capital and interest rates of these bonds are made in TRY.
Features of Foreign Exchange Bonds and Bonds Indexed to Foreign Exchange
- These bonds short-term bonds in proportion to Eurobond. (1-3 years)
- Can be issued with discount or coupon interest payment.
- For coupon payment bond coupon interest in coupon payment days and last coupon and capital payment in the end of due date is in issued foreign currency. Coupon interests as fixed or variable are paid within 3, 6 or 12 months periods.
- Issued by Treasury via tender or public offering in domestic market.
- Trading transactions are made in organized market under auspices of Treasury or OTC-Street market also called Over counter market. Coupon interest accumulated up to that day and daily foreign exchange rates are taken into consideration while pricing foreign exchange indexed funds so fluctuations of foreign exchange rates affect the prices of these bonds.
- In the market application exchange time of Foreign Exchange Debt Securities is T+3, for Foreign Exchange Indexed Debt Securities is T+0 working days.
- Foreign Exchange Payment Government Debt Securities in İşbank
- You only need Investment Account and Checking Deposit Account in related foreign exchange to trade Foreign Exchange Payment GDS.
- You can trade via our branches within office hours or via Internet Branch www.isbank.com.tr at any time of the day.
- You can participate in tenders and public offerings via our branches.
- If you want to sell your current securities before due date, you can easily turn your securities into cash from the buying price declared within that day.
- Coupon and capital payments are deposited automatically in related foreign exchange to your checking account.
- Trading prices are determined every day TSI at 09:30 parallel to market developments and price movements and within that day prices can be changed if it is necessary.
CPI Indexed Government Bonds provide a different investment option to investors by giving real income guarantee. Inflation gap of related coupon period according to reference indexes declared by Treasury is added on coupon interest determined by Treasury while issuing the security. So capital payments of bonds do not lose value and buying power of capital invested in CPIIndexed Government Bonds are protected. Regardless of inflation level of the period till due date of CPIIndexed Government Bonds paid reel income is fixed.
Consumer Prices Index (TÜFE) declared by Turkey Statistics Institution (TÜİK) is used for all payments relating to bonds. In this context, payment is made over nominal 100 TRY in case reference index of redemption date is smaller than reference index of issue date. Therefore in case of deflation within due date of bond, capital will not undergo any reduction.
For coupon payments, payments determined by Treasury will be made over nominal 100 TRY from the in case reference index of coupon payment date is smaller than reference index of issue date. Therefore reel income will not be below the rate by Treasury at any coupon period.
Please click www.hazine.gov.tr for more detailed information about inflation indexed bonds and reference indexes.