ISTANBUL—Turkey's banks are riding the boom in emerging-market debt, capitalizing on the country's recent credit-rating upgrade and investors' pursuit of higher yields.
Turkish banks sold a record $7.9 billion of dollar-denominated bonds in 2012, according to data provider Dealogic, mostly to foreign investors. That is triple the amount of debt sales in 2011 and vaults the country's lenders to third place in international bond issuance among banks in emerging markets behind Russia and Brazil.
Bank executives and analysts said they expect dollar-denominated-bond sales to set another high in 2013, the latest sign that Turkey's financial sector continues to mature after weathering a banking crisis a decade ago. Some observers, though, warn that the industry risks becoming too dependent on international markets for funding.
The rise in bond sales also is another vote of confidence in Turkey's economy, which government officials predict will expand 4% in 2013, compared with 3% in 2012.
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