Erdogan Faces Worse Deal in Sukuk Debt Market: Turkey Credit
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Turkey, planning its first sale of bonds that comply with Islamic law, may have to pay about a percentage point more in interest than on bonds sold in dollars that don’t have religious restrictions.
Turkey, the second-biggest Muslim economy after Indonesia, will probably have to pay a minimum of 5.5 percent annually on five-year debt to be attractive, according to Samer Mardini, vice president of fixed-income and Islamic finance products at SJS Markets Ltd. in Dubai. That’s 120 basis points higher than similar maturity dollar debt, data compiled by Bloomberg show.