Active Mixed AidData Chinese Aid

China Development Bank provides EUR 420 million loan tranche to Turkcell for infrastructure investments and procurement of equipment and hardware from Chinese suppliers (Linked to Record ID#92620)

¥420M RMB

Funder	China Development Bank (CDB)
Recipient Organization	Turkcell İletişim Hizmetleri A.Ş. (Turkcell)
Country	Turkey
Start Date	Aug 07, 2020
End Date	Aug 25, 2033
Duration	4,766 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67356`

Grant Description

China Development Bank provides EUR 420 million loan tranche to Turkcell for infrastructure investments and procurement of equipment and hardware from Chinese suppliers On August 7, 2020, China Development signed an EUR 500 million loan agreement with Turkcell İletişim Hizmetleri A.Ş. (“Turkcell”) — the largest (private) mobile phone operator in Turkey — to finance investments in the company's infrastructure and the procurement of equipment and hardware from Chinese suppliers.

The signing of the loan agreement, which was amended and extended on August 7, 2023, followed the signing of a memorandum of understanding (MOU) between China Development Bank and Turkcell in December 2019.

📋 Loan / Grant Terms

💰 Loan Amountconsists of two tranches: an EUR 420 million tranche that carries an 8-year maturity

📅 Maturity8 years

⏳ Grace Period3 years

Record ID#67356 captures the EUR tranche and Record ID#92620 captures the RMB tranche.

As of March 31, 2021 and June 30, 2021, Turkcell had utilized (borrowed) EUR 57.1 million under the EUR 420 million loan tranche and RMB 147.3 million under the RMB 695 million loan tranche.

Additional disbursements of EUR 28,900,000, and EUR 36,603,000, and EUR 26,850,000 under the EUR 420 million loan tranche took place on February 8, 2023, May 29, 2023 and June 21, 2023, respectively. An additional disbursement of RMB 42,073,000 under the RMB 695 million tranche took place on September 6, 2023.

On August 7, 2023, Turkcell announced the availability period was extended to March 31, 2024.

📋 Staff Comments

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.
After the memorandum of understanding was signed, Osman Yılmaz, Executive Vice President of Turkcell Finance, said in his statement, ‘We are planning to be ready for financing in these days when our 5G studies are accelerating with our current technology. Our goal is to meet both our current purchases and 5G purchases that may occur in the future.’

📚 Sources & References

Turkcell inks 500M euro long-term loan deal with China Development Bank
Turkcell inks 500M euro long-term loan deal with China Development Bank
Turkcell to receive loan from China Development Bank
Turkcell inks 500M euro long-term loan deal with China Development Bank, 500 million euro loan from China Development Bank to Turkcel
Turkcell's 500 million-euro loan agreement with Chinese bank, 500 million euro loan from China Development Bank to Turkcel, 500 million euro loan from China to Turkcell
Turkcell
China Development Bank ink $590M loan deal
Turkcell 2020 Annual Report
Turkcell
China Development Bank sign $590M long-term loan deal
Turkcell in 500 mln euro loan deal with China Development Bank
INVESTOR PRESENTATION
Turkcell signs 500 mln euro loan MoU with China Development Bank
Notice re Signing of a Long-Term Loan Package
TURKCELL GROUP
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH INTERIM PERIOD ENDED 30 SEPTEMBER 2023
Turkcell extends loan with China Development Bank
SECURITIES AND EXCHANGE COMMISSION FORM 6-K Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments 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.