In little over a decade, Turkey has gone from being the sick man to the rich man of Europe. While other European countries have come through the crisis indebted, stunted and broke, Turkey has gone from strength to strength. Last year was a watershed, with growth coming in at 8.9%, inflation in low single digits and real interest rates close to zero.
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Turkey’s sovereign issuance programme in 2011 has ridden its luck but also benefited from its growing credibility in the international markets. Increasing rarity and a looming upgrade should help it complete its funding programme for the year, unless events get in the way. Nick Lord reports.
The last 12 months will be remembered as the time when Turkey’s banks broke out of their deposit only funding base. A wave of innovation has swept over the sector with new structures, terms and products allowing the banks to diversify and extend their funding base. Nick Lord reports.
Turkey’s privatisation programme ground to a halt during the crisis but came back strongly in 2010. Building on the successful sale of its electricity distribution assets, the government is now looking at power generation and transport infrastructure as the next sectors to be sold. The whole process will be much more important than the individual sales, instead ushering in a multi-year financing binge that is exciting local and foreign bankers alike. Nick Lord reports.
Equity issuance in Turkey has ground to a halt in recent months, after a strong 2010. Prospects look good for the second half of the year and beyond, as long as the lessons of 2010 have been learnt. Nick Lord reports.
Turkey’s REIT market has produced a number of deals in the last six months that show how good things can be in Turkey’s capital markets, and how bad. Getting the right listing strategy is key, as is having good underlying assets and a viable pipeline. Nick Lord reports.
Turkey’s companies have become far more active in the international loan markets, giving international banks exposure to the non-financial institution sector. But with huge financings due to come, some question whether there is enough liquidity. Nick Lord reports.
Akfen Holding’s adventures in the international capital markets show how important – and difficult - it is to develop a financing strategy. Others can learn much from the company. Nick Lord reports.
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