Turkey is planning to sell a new five-year U.S. dollar-denominated bond to mark its return to the international debt market amid increased hopes of improved ties with the U.S.
The country's Ministry of Treasury and Finance said it has tapped Deutsche Bank AG, Goldman Sachs Group Inc. and Société Générale SA to advise on the new sovereign bond sale.
A person familiar with the deal told the Financial Times that Turkey is seeking to raise between $1 billion and $1.5 billion through the bond sale, with initial pricing discussions targeting a yield of about 7.625%.
The Turkish government did not disclose terms of the planned debt issuance.
In April, Turkey sold a 10-year U.S. dollar-denominated bond priced at 6.2% yield and raised $2 billion, according to the FT.
Turkey's latest sovereign bond sale follows its release of U.S. pastor Andrew Brunson, whose detention on terrorism-related charges sparked U.S. sanctions and a selloff in the Turkish lira in recent months.
Brunson's release raised hopes of warmer relations between Washington and Ankara, although Turkish Foreign Minister Mevlüt Çavuşoğlu cautioned that some important obstacles remain.