Turkish incumbent Turk Telekom has signed two loan agreements, split between a €100m (US$137.6m) facility and a US$300m facility.
The €100m loan, agreed with the European Investment Bank, matures in eight years and has a three-year grace period. The…
Turkish incumbent Turk Telekom has signed two loan agreements, split between a €100m (US$137.6m) facility and a US$300m facility.
The €100m loan, agreed with the European Investment Bank, matures in eight years and has a three-year grace period. The annual interest rate has yet to be determined.
The US$300m loan was signed with China Development Bank. It has a nine-year maturity and a grace period of two and a half years. The annual interest rate is Libor +2.85%.
Proceeds from both loans will go towards capex.
The Turkish company said just days ago that it was planning to issue conventional and/or Islamic bonds (sukuk) abroad worth up to US$1bn.
The Turkish incumbent said in a short statement that one or more debt instruments will be issued within a year of obtaining approval from the Turkish Capital Markets Board. The Istanbul-based telco said the relevant application to the authority will be made “in due course”.
Barclays Bank, BNP Paribas, Emirates NBD Capital, JP Morgan Securities and Standard Chartered Bank have been mandated for the issuance.
Since March, Turk Telekom has secured about US$750m in four different loans, the most recent being a US$100m three-year loan agreement with RBS signed in July.
