Istanbul Municipality issues bonds worth US$ 305 million for metro projects as State Banks refuse to avail loans

Istanbul Metropolitan Municipality (IMM / IBB in Turkish) issued dollar-denominated bonds in the amount of US$ 305 million. A bond is an investment in which an investor lends money to government or corporate entities at a fixed interest rate for a certain period of time, at a variable or fixed interest rate, and receives an interest return at maturity.

Reuters quoted banking sources as saying, “the expectation of an initial yield of dollar-denominated bonds with Apri 2027 maturity  is between 11 percent and 11.25 percent.”

IMM President Ekrem Imamoglu had previously said that they had to find financing from abroad because the authority (in charge) did not allow credit limits of IMM with state-owned banks to be made available.

Funds to be used for Kabataş-Mahmutbey and Dudullu-Bostancı metros

The process is expected to be completed today. The fund from the bond issue will be used to finance the Kabataş-Mahmutbey and Dudullu-Bostancı metros.