İşbank issues USD 500 million additional tier 1 notes

İşbank issued its debut additional Tier 1 (AT1) bond in international markets. The coupon rate of the USD 500 million transaction, which is also the first issuance from Türkiye in international markets in 2025, was set at 9.125%. Resulting in the lowest yield and lowest spread among the additional Tier 1 issuances by Turkish banks to date, the transaction was oversubscribed with an orderbook of USD 1.5 billion. Attracting robust interest from various investor groups across a wide geography, 41% of the Notes were sold to the UK, 28% to Middle Eastern countries, 21% to Europe, 8% to the US and 2% to Asian countries. Majority of the investor composition was composed of asset management/fund management companies (42%) and banks (36%), whereas hedge funds (19%) and other investors (3%) made up the rest.

"We have further strengthened our balance sheet while raising external funding for Turkish economy, which we have been working to support for a century"

Commenting on the subject, İşbank CEO Hakan Aran expressed his satisfaction with opening the international markets for Turkish issuers in the new year through this transaction and said:

"With this issuance, which is the debut additional Tier 1 Eurobond of our Bank, we have added a new instrument type among our previous issuances. We have further strengthened our balance sheet while raising external funding for Turkish economy, which we have been working to support for a century, in line with our historical mission. We are aware of the importance of preparing all businesses, particularly SMEs, which are the backbone of our economy, for the evolving requirements of the ongoing sustainability and digital transformation. In that sense, we will use this new capital instrumentas leverage to serve of the Turkish economy further."