Turkcell a leading service provider in Turkey, says it has signed a landmark US$1 billion syndicated international Murabaha financing agreement with 14 banks.
Described as the largest-ever syndicated Islamic financing facility for a Turkish corporate, with very competitive maturity profile and pricing terms, the facility will finance Turkcell’s 5G and next-generation communication investments.
The transaction, says the company, underscores Turkcell’s strong credit profile and strategic access to international capital markets.
And of course it comes as Turkey prepares to launch 5G on 1 April. Turkcell says the Murabaha facility was launched to a select group of lenders at US$500 million, which then was oversubscribed by some 2.4 times, attracting very strong interest from top-tier Middle Eastern as well as diversified global and international banks.
On the back of the strong demand, mainly from GCC lenders, Turkcell decided to upsize the syndicated Murabaha facility to US$1 billion to primarily fund investments in 5G, advanced connectivity, digital infrastructure, and future communication solutions.
Kamil Kalyon, Turkcell’s Chief Financial Officer, notes: “Realising the potential of digital transformation and advanced technology depends on a robust balance sheet and diversified funding sources. Our steps are designed to deliver on today’s objectives while enabling tomorrow’s opportunities on a sustainable path.”
He adds: “With a seven-year tenor and highly attractive, super-tight financing terms, this facility will accelerate our 5G and digital infrastructure investments, diversify our funding structure, and support our long-term growth ambitions."
