By Nevzat Devranoglu
ISTANBUL, July 24 (Reuters) - Turkey's Akbank is close to mandating banks for its second lira-denominated Eurobond and a dollar-denominated issue, joining several peers seeking to tap a window of favourable market conditions, banking sources told Reuters on Wednesday.
Akbank, which declined to comment on its borrowing plans, in January became the first domestic borrower to issue a lira Eurobond, worth a nominal 1 billion lira ($526 million) and with a final price of 7.5 percent.
The move aimed to address a mismatch between maturity terms for its assets and liabilities, a problem across the Turkish banking sector, where deposits have an average maturity of about 60 days while loan maturities can be up to 10 years.
Bankers say lira Eurobonds will help to create funding for lira lending without maturity mismatches and that a window of opportunity has reopened in markets after U.S. Fed chairman Ben Bernanke last week alleviated concerns about the pace at which the Fed will taper its bond buying programme.
Turkey's Ziraat Bank hired Bank of America Merrill Lynch, Citigroup, Deutsche Bank, HSBC and JP Morgan for a dollar Eurobond earlier this year but has yet to make an issue, banking sources said.
Yapi Kredi and Sekerbank are also considering issues, according to banking sources.
In its first lira Eurobond issue, Akbank mandated Bank of America Merrill Lynch, Deutsche Bank, JP Morgan, Citi and HSBC.
Turkish beverage maker Coca Cola Icecek also said last week that it had applied to the Capital Markets Board to issue bonds worth up to $1 billion within a year.
Conglomerate Akfen Holding's Mersin International Port unit also mandated banks on Tuesday for a Eurobond issue of up to $600 million in varying maturities.
($1 = 1.9004 Turkish lira)
(Writing by Seda Sezer; editing by Nick Tattersall and David Evans) Keywords: TURKEY AKBANK/EUROBOND
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