Turkey

The USD 500m debt of Istanbul Deniz Otobusleri (IDO), a Turkey-based ferry company, will be divided into two as a sustainable and unsustainable loan, which will be reinstated separately on the OpCo and MidCo levels, according to two sources familiar with the situation.

Still reeling from the aftermath of the currency crisis in Summer 2018, Turkish corporates are poorly positioned to weather a fresh storm caused by the coronavirus pandemic, according to market participants polled by Debtwire.

With few signs that a financial fix for Turkey’s debt-laden energy sector – proposed by the government earlier this year – is any closer to materialising, concern is mounting that not enough is being done to achieve an urgently needed operational turnaround in the industry, several market participants told Debtwire.

An omnibus bill entered into force in Turkey last week, introducing long-awaited additional provisions to the country's Banking Law aimed at solving a number of technical and practical hurdles to debt restructurings.

Debtwire, the leading provider of news, data and analysis on debt markets worldwide, has calculated that more than USD 17bn worth of major restructuring and stressed refinancing transactions have been completed in Turkey since early 2018. 

A block of Istanbul’s Third Bosphorus Bridge project loan is set to swap hands, as local lender Turkiye Garanti Bankasi (Garanti) is selling a portion of its exposure to another Turkey-based bank, said two sources familiar with the situation.

Turkish Eurobond issuance volume year-to-date (YTD) is already double that in 1Q18, following a deluge of Anatolian deals in March, according to a Debtwire analysis. Some USD 9.4bn worth of US dollar- and euro-denominated bonds have been issued so far this year, compared to USD 4.7bn in 1Q18.

Debtwire launched the 14th edition of the European Distressed Debt Market Outlook today (14 February), produced in association with Greenhill and Orrick.