Turk Telekom (TT) has completed its US$1bn dual-tranche corporate bond offering.
Both US$500m tranches, with five and 10-year maturities, priced at 30bps over Turkish sovereign issues of similar tenors, the Turkish incumbent said in a statement.
The…
Turk Telekom (TT) has completed its US$1bn dual-tranche corporate bond offering.
Both US$500m tranches, with five and 10-year maturities, priced at 30bps over Turkish sovereign issues of similar tenors, the Turkish incumbent said in a statement.
The five-year tranche priced at 99.6% with a 3.75% coupon and the 10-year tranche at 99.165% with a 4.875% coupon.
The Istanbul-listed telco said the offering was about eight times oversubscribed, with orders from investors across 40 countries totalling more than US$5.5bn. Nearly half of the US$1bn offering was distributed to investors in the US, followed by Europe, the UK and the Middle East and Asia.
Barclays, BNP Paribas, Emirates NBD, JP Morgan and Standard Chartered worked on the transaction.
The issuance follows a roadshow in London and the US, with TT saying it took advantage of the strong investor appetite and low interest rate environment to launch the transaction on the final day.
The telco intends to use the proceeds to refinance short-term portions of existing debt under better terms with new lenders, diversifying its funding base.
TT described the issue as “an important indicator of international investors’ confidence in Turkey and Turkish companies”, adding that it “sets a new benchmark for other Turkish corporates”.
Turk Telekom reported revenues for 2013 of TL13.2bn (US$5.9bn), up 3.8% year on year. EBITDA stood at TL5bn (US$2.3bn), down 2.2% on the 2012 result. The company’s net debt stood at TL8.3bn (US$3.7bn).
