Turkcell’s US$ 500 mn Eurobond Sale is Successfully Completed

Turkcell (NYSE:TKC)(BIST:TCELL) has announced that the sale process of the Eurobond issuance has been completed and the proceeds were transferred to the company’s accounts.

The aggregate principal amount in question was USD 500 million, and the bonds were issued with 10 year maturity, a redemption date of 15.10.2025 and coupon rate of 5.75% based on a 5.95% reoffer yield to qualified investors domiciled outside of Turkey.

The notes are now listed on the official list and admitted to trading on the main securities market of the Irish Stock Exchange.

Successful sale at a volatile time for Emerging Markets

This successful sale, which came at a particularly volatile time for emerging economies, is the first and only Eurobond sale to be held by a Turkish company in international markets in 2015.

The offering received great interest from accounts across the US and Europe with 199 investors subscribing to the final orderbook. The process ended with a very strong orderbook that was almost 4 times oversubscribed.

The transaction was announced with initial price guidance of 6.25%. Following strong interest from European investors in the early hours of book-building, the book quickly gained momentum and the issuance resulted in a re-offer yield of 5.950% and 5.75% coupon.

Turkcell has effectively paid no new issue premium, which makes the bond issuance unique among not only emerging market corporates but also among Western European and US corporate borrowers over the past month.

Sign of investors’ trust in Turkey, Turkcell and the new management strategy

"We have witnessed an extremely successful execution of Eurobond sale despite the negative atmosphere that prevails in the global markets regarding emerging economies. With this sale, international capital markets have opened up once again to Turkish companies,” said Kaan Terzioglu, CEO of Turkcell. "This is yet another stage in the series of developments that have proved the trust of the international investor community in Turkey, Turkcell and our new management strategy.”

Turkcell worked with BNP Paribas, HSBC and Citigroup, as Joint Lead Managers, for this bond issuance.

First Issuer out of Turkey with 3 Investment Grade Ratings

In September, Turkcell had received investment-grade rating from the world’s top 3 rating agencies – Standard and Poor’s, Moody’s and Fitch – making it the first Turkish company that has achieved 3 investment grade ratings.

On September 17^th, Turkcell had announced the signing of a loan agreement with BNP Paribas, Citibank, HSBC, ING and Intesa Sanpaolo SpA for an amount of US$ 500 million and Euro 445 million.

On September 29^th, Turkcell and China Development Bank reached an agreement to sign two separate loan agreements for EUR500 million and EUR750 million.

When all transactions are completed, the amount of capital raised from international markets for potential use will amount to approximately US$ 2.9 billion.

ABOUT TURKCELL: Turkcell is an integrated communication and technology services player in Turkey. Turkcell Group has approximately 67.9 million mobile subscribers in nine countries and over 1.3 million fixed subscribers in Turkey as of June 30, 2015. Turkcell was one of the first among the global operators to have implemented HSPA+. It has announced two new HSPA+ Technologies on its 3G network to meet rising data usage. Having successfully integrated 3C-HSDPA and DC-HSUPA Technologies, it became the first mobile operator in the world to enable peak speed of 63.3 Mbps downlink while also enabled an 11.5 Mbps uplink on a 3G network. Turkcell is the first telecom operator to offer households fiber broadband connection at speeds of up to 1,000 Mbps in Turkey. As of June 2015, Turkcell’s population coverage is at 99.85% in 2G and 92.06% in 3G. Turkcell Group reported a TRY3.1 billion (US$1.2 billion) revenue with total assets of TRY20.7 billion (US$7.7billion) as of June 30, 2015. It has been listed on the NYSE and the BIST since July 2000, and is the only NYSE-listed company in Turkey. Read more at www.turkcell.com.tr.

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