Turk Telekom has secured a €100m (US$127m) long-term loan with the European Bank for Reconstruction and Development (EBRD) to finance the expansion of its fixed broadband networks.
The loan, agreed to on 29 June, has a maturity of eight years, a grace…
Turk Telekom has secured a €100m (US$127m) long-term loan with the European Bank for Reconstruction and Development (EBRD) to finance the expansion of its fixed broadband networks.
The loan, agreed to on 29 June, has a maturity of eight years, a grace period of two years and an interest rate of EURIBOR + 325bps, the Istanbul-based telco said in a statement.
The EBRD said the financing will support Turk Telekom’s plan to extend broadband infrastructure in all regions by 2016. Specifically, it will fund network expansion in Adana, Diyarbakir, Erzurum, Kayseri, Samsun and Trabzon.
“With its fast-growing economy and young population, Turkey needs significant investment to catch up with Western Europe in terms of availability of broadband internet services,” the bank said.
Broadband penetration averages less than 15% for both fixed and mobile in Turkey, the bank noted, compared with 40% in Western Europe.