İşbank breaks new ground among Turkish banks: 12-year Tier 2 Eurobond issuance

İşbank has issued a new USD 500 million Tier 2 Eurobond in international capital markets, with a 12-year maturity and a call option in year seven. The transaction marks the first 12-year Tier 2 issuance by a Turkish bank.

The transaction also stands out as the longest-dated public Tier 2 transaction ever completed in Central and Eastern Europe, the Middle East and Africa.

Strong demand enabled the coupon to be set at 8.40%, 35 basis points below the initial price guidance.

The offering attracted strong interest from international investors across a broad geographic base. Of the Eurobonds, 46% were allocated to investors in the United Kingdom, 20% to Europe, 17% to the United States, 16% to the Middle East and 1% to Asia.

“A testament to international investors' confidence and İşbank's strong position in the capital markets"

İşbank Deputy Chief Executive Officer Ebru Özşuca said the transaction, completed at a time of heightened geopolitical uncertainty and global market volatility, once again affirmed international investors' confidence in both Türkiye's economy and İşbank.

Özşuca said the bond's distinction as the longest-dated public Tier 2 transaction ever completed in Central and Eastern Europe, the Middle East and Africa makes it an important benchmark for international capital markets.

Three Tier 2 Eurobond issuances totaling USD 1.5 billion in international markets over the past year

Özşuca noted that strong investor demand enabled the transaction to be priced at a new-issue premium below the levels seen in recent transactions in international capital markets. She emphasized that this was tangible evidence of confidence in İşbank's robust financial position, the depth of its international investor base and the trust it has built over many years.

Özşuca added that İşbank had successfully completed three Tier 2 Eurobond issuances totaling USD 1.5 billion in international markets over the past year. She said this long-term funding, which further strengthens İşbank's capital structure, would help meet the financing needs of the real economy.​