Istanbul-based Turkcell (IST:
Istanbul-based Turkcell (IST:
Together the loans will total €1.25bn (US$1.4bn) and mature in 10 years, with an expected annual interest rate of EURIBOR plus 2.2%.
The financing is split between €500m (US$561m) and €750m (US$841m) tranches. The €500m will be used to refinance Turkcell’s existing loans and can be drawn for the next two years.
The €750m is available for three years and will be used to buy equipment from Chinese vendors to improve Turkcell’s network infrastructure.
It is the third such financing package CDB has issued in September. At the start of the month, it signed loan agreements with Russian operators MegaFon and Rostelecom, both of which are using the proceeds to buy equipment from Huawei. Turkcell did not disclose from which Chinese vendor it would acquire equipment.