The board of Halkbank on Monday of last week (27 May) authorised debt issuance in the international markets that includes a provision for covered bonds alongside senior unsecured and subordinated debt.

According to a statement for the Istanbul Stock Exchange, the bank listed covered bonds in instruments approved as part of up to $3bn (Eu2.30bn, TL5.66bn) of issuance in US dollars “or in equivalent currencies” and Turkish lira with maturities of up to 10 years. Halkbank said that these can be sold to qualified investors based in international capital markets and in the US, with approval for the establishment of a Global MTN or EMTN programme.

Halkbank could not be reached for comment by the The CBR’s deadline.

Should Halkbank proceed with covered bond issuance it would join what looks set to be a burgeoning Turkish market. Sekerbank and Yapi Kredi have issued SME backed covered bonds, privately placed, while Garanti Bank and others are exploring mortgage backed issuance and the possibility of selling deals internationally.