Turkcell’s US$ 500 mn Eurobond Sale is Successfully Completed
October 16 2015 - 2:37PM
Business Wire
Turkcell (NYSE:TKC)(BIST:TCELL) has announced that the sale
process of the Eurobond issuance has been completed and the
proceeds were transferred to the company’s accounts.
The aggregate principal amount in question was USD 500 million,
and the bonds were issued with 10 year maturity, a redemption date
of 15.10.2025 and coupon rate of 5.75% based on a 5.95% reoffer
yield to qualified investors domiciled outside of Turkey.
The notes are now listed on the official list and admitted to
trading on the main securities market of the Irish Stock
Exchange.
Successful sale at a volatile time for Emerging
Markets
This successful sale, which came at a particularly volatile time
for emerging economies, is the first and only Eurobond sale to be
held by a Turkish company in international markets in 2015.
The offering received great interest from accounts across the US
and Europe with 199 investors subscribing to the final orderbook.
The process ended with a very strong orderbook that was almost 4
times oversubscribed.
The transaction was announced with initial price guidance of
6.25%. Following strong interest from European investors in the
early hours of book-building, the book quickly gained momentum and
the issuance resulted in a re-offer yield of 5.950% and 5.75%
coupon.
Turkcell has effectively paid no new issue premium, which
makes the bond issuance unique among not only emerging market
corporates but also among Western European and US corporate
borrowers over the past month.
Sign of investors’ trust in Turkey, Turkcell and the new
management strategy
“We have witnessed an extremely successful execution of Eurobond
sale despite the negative atmosphere that prevails in the global
markets regarding emerging economies. With this sale, international
capital markets have opened up once again to Turkish companies,”
said Kaan Terzioğlu, CEO of Turkcell. “This is yet another
stage in the series of developments that have proved the trust of
the international investor community in Turkey, Turkcell and our
new management strategy.”
Turkcell worked with BNP Paribas, HSBC and Citigroup, as Joint
Lead Managers, for this bond issuance.
First Issuer out of Turkey with 3 Investment Grade
Ratings
In September, Turkcell had received investment-grade rating from
the world’s top 3 rating agencies – Standard and Poor’s, Moody’s
and Fitch – making it the first Turkish company that has achieved 3
investment grade ratings.
On September 17th, Turkcell had announced the signing of a loan
agreement with BNP Paribas, Citibank, HSBC, ING and Intesa Sanpaolo
SpA for an amount of US$ 500 million and Euro 445 million.
On September 29th, Turkcell and China Development Bank reached
an agreement to sign two separate loan agreements for EUR500
million and EUR750 million.
When all transactions are completed, the amount of capital
raised from international markets for potential use will amount to
approximately US$ 2.9 billion.
ABOUT TURKCELL: Turkcell is an integrated communication
and technology services player in Turkey. Turkcell Group has
approximately 67.9 million mobile subscribers in nine countries and
over 1.3 million fixed subscribers in Turkey as of June 30, 2015.
Turkcell was one of the first among the global operators to have
implemented HSPA+. It has announced two new HSPA+ Technologies on
its 3G network to meet rising data usage. Having successfully
integrated 3C-HSDPA and DC-HSUPA Technologies, it became the first
mobile operator in the world to enable peak speed of 63.3 Mbps
downlink while also enabled an 11.5 Mbps uplink on a 3G network.
Turkcell is the first telecom operator to offer households fiber
broadband connection at speeds of up to 1,000 Mbps in Turkey. As of
June 2015, Turkcell’s population coverage is at 99.85% in 2G and
92.06% in 3G. Turkcell Group reported a TRY3.1 billion (US$1.2
billion) revenue with total assets of TRY20.7 billion
(US$7.7billion) as of June 30, 2015. It has been listed on the NYSE
and the BIST since July 2000, and is the only NYSE-listed company
in Turkey. Read more at www.turkcell.com.tr.
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version on businesswire.com: http://www.businesswire.com/news/home/20151016005953/en/
Turkcell Corporate CommunicationsHande Asik,
+90-532-210-6471International Media
Relationshande.asik@turkcell.com.trYou can follow Turkcell
developments on Twitter:http://twitter.com/TurkcellNews
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