Turkcell’s management went on an investor roadshow in Europe and the US in September to showcase the company’s development and test the market’s appetite for potential bond issues, and the operator has now placed US$500m in 10-year notes.
Turkcell (IST:TCELL) has placed US$500m of 10-year notes which will be quoted on the Irish Stock Exchange.
The Istanbul-based operator’s debt was recently raised from junk to investment grade by Moody’s, Fitch and S&P, although the newly-issued bond still carries a hefty 5.75% coupon based on a 5.95% reoffer yield.
Turkcell’s management went on an investor roadshow in Europe and the US in September to showcase the company’s development and test the market’s appetite for potential bond issues.
Turkcell declined to provide further details on the offering until the transaction closes, expected to occur on 15 October.
The bond follows Turkcell securing a two-tranche loan with China Development Bank (CDB) at the end of September to refinance existing debt and pay for new equipment. The facility totalled €1.25bn (US$1.4bn) and will mature in 10 years, with an expected annual interest rate of EURIBOR plus 2.2%.
After years of being in the middle of a tug-of-war between its main investors – Russian billionaire Mikhail Fridman’s Altimo, Turkish billionaire Mehmet Emin Karamehmet’s Cukurova and Swedish telco TeliaSonera – for control of the company, Turkcell issued its first dividend in years in March. It is now on a more even footing and looking to invest in “organic and inorganic growth opportunities to strengthen our position in the countries where we operate”.
It consolidated Ukrainian mobile operator Life in the summer and is exploring the possibility of buying out TeliaSonera from their Eurasian joint venture Fintur, in which the Swedish telco has the majority holding.