Fitch: Growing Turkey bond market

Fitch Ratings commented that recent moves to develop Turkey's domestic lira bond market have already resulted in successful issuance by the Akfen infrastructure holding company. Fitch also said it anticipates further corporate issuance will occur in the next 18 to 24 months.

The development of the domestic bond market is designed to offer local corporate issuers an alternative medium-long term funding source, the agency said.

While many issuers with larger funding requirements are still likely to look to the international bond markets, issuers with smaller funding requirements are likely to consider the option of lira issuance attractive, Fitch said.

Recent regulatory changes highlight the enthusiasm of Turkey's monetary authorities to improve the balance sheets of domestic corporations and to offer investors alternative investment instruments, the agency said.

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