It said in a statement that it would issue the securities, with a one-year maturity, starting Wednesday, in order to diversify borrowing instruments and to broaden investor base.

Turkey already issues euro-denominated bonds but, with around two-thirds of its sovereign debt in dollars, it has sought to reduce vulnerability to fluctuations against the US currency following a recent slump in the lira.

The lira has fallen around 40 percent so far this year, hitting a record low of 7.2 to the dollar in mid-August. It was trading on Tuesday at just under 6.5 per dollar.

Last month President Tayyip Erdogan said Ankara plans to issue yuan-denominated bonds for the first time, a move he said would overcome what he described as subjective judgments by Western ratings agencies on Turkey's economy.

Copyright Reuters, 2018