Gold bond issue: Treasury sells 7,943 kg gold to institutional buyers

Turkey’s Treasury and Finance Ministry completed a direct-sale issuance of gold bonds and gold-backed lease certificates for institutional investors, with value date May 20, 2026 and maturity set for November 17, 2027. The announcements were published on the Ministry’s channels and reported by financial media.

The gold bond was issued against 7,943 kilograms of LBMA-standard 995/1000 fine gold, while the gold-backed lease certificates were issued against 12,438 kilograms of the same standard. Both instruments carry a semiannual coupon/lease payment of 0.40%, equivalent to an annual rate of 0.80%. ISIN identifiers and subscription procedures were detailed in the issuance notices and investor guides.

As instruments that settle in physical gold, these issues provide the Treasury with a non-TL financing channel and can influence demand for physical gold in domestic channels. The exchange between delivered bullion and tradable securities via Borsa İstanbul’s Precious Metals Market and participating banks is a core operational feature, consistent with prior issuances and public debt management reporting.

Market impact will depend on global and local gold price dynamics, institutional uptake and liquidity conditions. Increased institutional allocations to gold-linked securities may modestly reduce near-term pressure on TL funding needs, while elevating activity in precious metals trading venues. Execution of payments and physical delivery mechanics through the central bank and exchange systems remain important for market confidence.

Analysts expect the Treasury to continue using diversified instruments where demand exists, with future issuance decisions guided by investor interest, bank participation and macroeconomic funding priorities. Market participants will watch coupon flows, the functioning of delivery mechanisms and global gold price trends as key determinants of secondary-market behavior ahead of the November 2027 maturity.