Bills and Bonds

Treasury Notes are government debt securities issued by the Treasury of the Republic of Turkey in Turkish Lira or foreign currencies with a maturity of shorter than one year, while State Bonds are government debt securities issued by the Treasury of the Republic of Turkey in Turkish Lira or foreign currencies with a maturity of one year or more.

Treasury Notes are sold with discount, and its return payable at the end of maturity is known beforehand. State Bonds may be with discount or coupon payments. Coupon Bonds may be issued with fixed or variable coupon interests. If you hold both of these notes until the end of maturity, payment of the principal sum and interests to you is under guarantee of the Treasury of the Republic of Turkey.

Eurobond is a type of coupon bond issued generally as bearer bonds by governments or corporations in a currency, other than TL, simultaneously in several countries via a bank or a syndicate of banks or through an international consortium.

Eurobond maturity is generally between 5 and 30 years. Eurobond coupon payment frequency may be 6 or 12 months, and in general, USD Eurobonds are issued with semi-annual coupon payments, while EURO Eurobonds are issued with annual coupon payments. Coupon interest rates may be variable, but are generally fixed. Eurobonds are not physically delivered. In secondary market, they are traded with “date of transaction + 2 business days” value date. Trades are mostly settled via foreign custodian (settlement and clearing) banks. Eurobonds of our customers are kept in Euroclear in the name of Burgan Bank, and in our Bank in the name of our customer. It is fit and convenient for investors thinking to invest their savings in foreign currency in long-term.