Turkey seen extending 1.25 bln lira debt in swaps

ISTANBUL, Nov 5 - The Turkish Treasury is expected to extend the maturity of some 1.25 billion lira ($832.8 million) in domestic debt in two swap auctions on Thursday, a Reuters survey of bankers showed.

The Treasury will buy back March 3, 2010 paper in exchange for issuing Aug. 3, 2011 bonds.

It will also buy back floating-rate notes maturing on Feb. 17, 2010 and issue in their place floating rate notes maturing on Sept. 28, 2016.

According to the survey of seven bankers, the Aug. 3, 2011 bonds were expected to have a compound yield of 8.92 percent and a price of 86.19 lira.

The Sept, 28, 2016 FRN was expected to be priced at 101.48 lira.

The two issues will be value-dated Nov. 6.