Türkiye nears first bond sale to Abu Dhabi fund in landmark deal

Türkiye is considering selling its first bond to Abu Dhabi Developmental Holding Company (ADQ) by the end of this year, marking a milestone for Turkish policymakers trying to recover foreign investors after years of distrust.

“The Turkish government is likely to offer 10-year bonds in tranches in favor of (ADQ) holding, owned by Abu Dhabi, the oil-rich capital of the UAE,” Turkish Treasury and Finance Minister Mohammed Shimchek told Bloomberg.

The expected deal will begin with what may be the largest capital flow from Middle Eastern oil countries to Turkey’s $1 trillion economy. Saudi Arabia and the UAE have expressed interest in investing in Turkey following a political change that ended the era of cheap money under Shimchek, appointed in June.

Meanwhile, President Recep Tayyip Erdogan has strengthened relations with regional heavyweights, leading outreach efforts to oil producers.

“We do not have to spend it immediately. We may therefore take advantage of this opportunity in part before the end of this year,” Shimchek said.

The amounts that the state will receive from the holding “ADQ” will be used to finance the reconstruction efforts of Turkey’s southeastern provinces, which were hit by two powerful earthquakes in February.