Turkcell secures $1B through Eurobond issuance, engaging with over 60 investors
File photo shows Türkiye's leading telecommunication company, Turkcell's headquarters in Istanbul, Türkiye. (IHA Photo)
Türkiye’s leading state-owned telecommunication company, Turkcell raised $1 billion through a dual-tranche Eurobond issuance, which garnered significant interest from investors in Europe, the Middle East, and Asia.
According to the company’s statement, the issuance included a $500 million five-year traditional bond and a $500 million seven-year sustainable bond. The sustainable bond emphasized Turkcell’s environmental, social, and governance commitments, highlighting projects and investments in energy efficiency, renewable energy, the circular economy, and corporate social responsibility initiatives, the statement read.
Giants involved in first Eurobond issuance since 2018
The five-year bond was priced with a 7.45% interest rate, while the seven-year sustainable bond offered a 7.65% interest rate. Turkcell held investor meetings in London, UK, which Treasury and Finance Minister Mehmet Simsek also attended on Jan. 16, engaging with over 60 investors as part of its first international bond issuance since 2018. The issuance process involved prominent international financial institutions such as Bank of America, Emirates NBD Capital, HSBC, and JPMorgan.
The company stated that its digital transformation strategies, strong financial structure, and successful operational performance metrics were key factors in attracting significant investor interest.
Kamil Kalyon, Turkcell’s Executive Vice President for Finance, stated that the funds secured through the issuance would provide a significant opportunity to enhance the company’s digital infrastructure and support the implementation of sustainable projects.
“With our focus on technology, innovation, and sustainability, we will continue to create value and take a leading role in sustainability projects,” he noted.
Founded in 1994, Turkcell is a leading telecommunications company in Türkiye, with the Türkiye Wealth Fund (TWF) directly owning a 26.8% stake.
A Eurobond issuance is when a company or government raises money by issuing bonds in a currency that is not the issuer’s home currency. These bonds are sold to international investors and are typically used to attract foreign capital.
