Loading grant details…
[Umbrella] China Development Bank provides EUR 1.25 billion loan to Turkcell to restructure the company’s existing loans and facilitate purchases from Chinese suppliers (Linked to Record ID#73232 and #73233)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Turkcell İletişim Hizmetleri A.Ş. (Turkcell) |
| Country | Turkey |
| Start Date | Oct 23, 2015 |
| End Date | Jan 02, 2029 |
| Duration | 4,820 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 67355 |
Grant Description
[Umbrella] China Development Bank provides EUR 1.25 billion loan to Turkcell to restructure the company’s existing loans and facilitate purchases from Chinese suppliers On October 23, 2015, China Development Bank (CDB) issued a loan worth 1.25 billion euros to Turkcell İletişim Hizmetleri A.Ş. (“Turkcell”) — the largest (private) mobile phone operator in Turkey — to restructure the company’s existing loans and to help finance purchases from China for infrastructure investments.
The annual interest rate was expected to be 2.2 percent above the Euro Interbank Offered Rate (EURIBOR) of 0.027%. The loan was to be repaid in equal installments.
Under the terms of the agreement, CDB agreed to provide the loan in two tranches: a EUR 500 million tranche (captured In Record ID#73232) and a EUR 750 million tranche (captured in Record ID#73233). The EUR 500 million tranche was to be used by the borrower to refinance some of the Turkcell Group’s existing loans.
The EUR 750 million tranche was to be used by the borrower to finance certain procurement requirements from Chinese suppliers in relation to certain infrastructure investments by Turkcell Group. As of December 31, 2017, an amount of EUR 560 million had been utilized by the borrower.
On March 5, 2018, the scope of the EUR 690 million unutilized portion of the EUR 750 million loan tranche signed with CDB was expanded.
In addition to Turkcell Iletisim Hizmetleri A.S., several subsidiaries of the Turkcell Group — Superonline Iletisim Hizmetleri A.S., Financell and lifecell LLC — were authorized to utilize the second loan tranche.
In addition to the right to utilize the tranche in EUR terms, it could also be utilized in USD and Renminbi with respective annual interest rates of LIBOR (0.794%) + 2.22% and 5.51%. There were no changes to maturity and the repayment schedule of the loan.
Staff Comments
1. This is an umbrella project listing projects for two separate loans worth US 500$million and US$750 million2. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- Announcement Regarding Signing a Loan Agreement Package with China Development Bank
- Turkey's Turkcell signs 1.25 bln euro loan with China Development Bank, https://s3-us-west-2.amazonaws.com/ungc-production/attachments/cop_2016/335091/original/CHINA_DEVELOPMENT_BANK_SUSTAINABILITY_REPORT_2015.pdf?1478253427
- UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Turkcell Annual Report 2018
- TURKCELL GROUP: 2015 FINANCIAL AND OPERATIONAL REVIEW
- REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
- TURKCELL ILETISIM HIZMETLERI A.S., 2019 Winners - Bonds & Loans Awards Turkey2.pdf
- TURKCELL ILETISIM HIZMETLERI A.S. Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Turkcell İletişim Hizmetleri A.Ş. (Turkcell)
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
