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Turkey’s sovereign wealth fund draws strong demand at debut bond sale

Issuance comes days after departure of central bank chief who had taken hawkish approach to high inflation

Turkey’s sovereign wealth fund tests investor appetite with $500mn bond dealTurkey’s sovereign wealth fund attracted strong demand for its debut international bond deal, in the clearest sign yet that investors have shrugged off last week’s shake-up at the country’s central bank.

The Turkish Wealth Fund notched up $7bn in orders for its $500mn US dollar-denominated bond deal on Wednesday, according to a term sheet seen by the Financial Times.

The TWF’s successful fundraising underscores how investors have embraced new central bank governor Fatih Karahan, who was appointed on Friday in the latest upheaval for the institution. His predecessor Hafize Gaye Erkan stepped down about eight months into her tenure, during which she increased interest rates from 8.5 per cent to 45 per cent.

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