By Rebecca Melvin
New York, Dec. 4 – Istanbul Metropolitan Municipality sold $580 million of 6 3/8% five-year senior notes (B2//BB-) at 99.055 for a yield of 6.6%, or 617.1 basis points over U.S. Treasuries, according to additional details of the issuance from market sources.
Istanbul Metropolitan Municipality guided pricing to yield in the area of 6¾%, according to a market source on Wednesday. Pricing was tightened from initial price talk in the area of 7%.
The order books were in excess of $2 billion before the open of financial markets in the United States.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Nomura Securities International Inc. and Societe Generale are joint bookrunners of the Rule 144A and Regulation S notes. ING Bank is the lead manager.
The proceeds will be used for several metro line infrastructure projects.
The municipality is made up of district municipalities of Istanbul and governed by a non-elected council body.
| Issuer: | Istanbul Metropolitan Municipality
|
| Issue: | Senior notes
|
| Amount: | $580 million
|
| Maturity: | Dec. 9, 2025
|
| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Nomura Securities International Inc. and Societe Generale
|
| Lead manager: | ING Bank
|
| Coupon: | 6 3/8%
|
| Price: | 99.055
|
| Yield: | 6.6%
|
| Spread: | 617.1 bps over U.S. Treasuries
|
| Pricing date: | Dec. 2
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody’s: B2
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
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