International credit rating agency Fitch Ratings has projected that growth in Turkey's debt capital market will continue. In the "Turkey Debt Capital Market Monitor" report published by the agency, it was stated that the total size of debt instruments in circulation could reach $550 billion by 2027.
According to the report, the total size of instruments in circulation in Turkey's debt capital market exceeded $526 billion by the end of the third quarter of 2026, an increase of 4 percent on an annual basis. Conversely, the total issuance volume in the first nine months of the year fell to $115.3 billion. Fitch reported that an 8 percent year-on-year decline in bond issuances was a contributing factor to this decrease.
A stronger outlook emerged on the sukuk side. Sukuk issuances in Turkey rose by 46 percent in the January-September period compared to the same period last year. As a result, the share of sukuk in total debt capital market issuances increased from 11 percent to 16 percent. The size of sukuk in circulation also exceeded $46 billion by the end of the third quarter.
According to Fitch's assessment, Turkey ranked third among emerging markets, excluding China, in dollar-denominated debt instrument issuances in the first nine months of the year. The country also stood out as one of the three G20 countries active in the sukuk market.
The report also covered environmental, social, and governance (ESG) focused debt instruments. While Turkey ranked fifth in dollar-denominated ESG debt instrument issuances in emerging markets excluding China, its share in this market was recorded at 12 percent in the first nine months of 2026.
Fitch also noted that the yield spread of Turkey's 10-year dollar-denominated government bonds over US Treasury bonds has narrowed from the peak seen in March. The share of non-resident investors in domestic government debt instruments declined slightly to 7.2 percent as of the end of August 2026.
News Source: 12punto
