TYABY Turkiye IS Bankasi AS C (PK)

   By Patrick McGee 
 

Turkish lender Turkiye Is Bankasi AS (ISCTR.IS) sold $1 billion worth of U.S. dollar, 10-year subordinate bonds yielding 6% on Thursday.

The offered yield on the lower Tier-2 bonds fell from as high as 6.50%, suggesting strong appetite from investors. "Tier-2" means the funds raised sit lower in the capital structure than senior debt, exposing investors to additional risks.

The bonds were provisionally rated Baa2 by Moody's Investors Service and BBB-minus by Fitch Ratings, both investment-grade ratings. Standard & Poor's placed them in the junk category, at BB.

On Monday, Turkish lender Akbank T.A.S. (AKBTY, AKBNK.IS) tapped the U.S. bond market for $1 billion.

The two deals push the tally of Turkish deals in the U.S. market to a new record of at least $10.9 billion, according to data provider Dealogic. The prior record was $6.6 billion, from 2005. Last year, just $4.7 billion was sold.

Deutsche Bank, J.P. Morgan Chase & Co., Mitsubishi, and Standard Chartered were the lead managers on the IsBank deal.

--Sarka Halas contributed to this article

Write to Patrick McGee at patrick.mcgee@dowjones.com