Turkcell Signs an MoU with China Development Bank in Relation to Long-term Financing

Turkcell (NYSE:TKC) (BIST:TCELL) is preparing financing for its strategic focus areas and next-generation technology investments, following the company’s recent announcement of 3-year targets in London. Meanwhile, the stabilizing macro-economic environment in Turkey continues to support Turkcell’s long-term strategy, and thanks to its prudent financial management the company continues to attract international investors and financial institutions.

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Turkcell has today signed a Memorandum of Understanding in relation to an 8-year term loan of 500 million Euros with China Development Bank. (Photo: Business Wire)

The company has today signed a Memorandum of Understanding in relation to an 8-year term loan of 500 million Euros with China Development Bank. Supported by growing demand from corporate and retail customers, the new loan will be used to finance the procurement of hardware and equipment from Chinese vendors. The door-to-door tenor of the loan facility will be 8 years, of which the first 3 years will be an availability (and grace) period. The parties have already begun work on the structuring and execution of the loan agreement.

“As we work on strengthening our existing technology and 5G preparations, we are also planning for financing,” says Osman Yilmaz, Turkcell’s Executive Vice President for Finance (CFO). “This long-term and cost-effective loan facility is intended to support the financing of our next 3-year procurement in step with our plan. We aim to sign the facility agreement, through which our ongoing and potential 5G investments will be financed, in the first quarter of next year. We consider this development to be an important indication of confidence in both our company and country, and hope that it will pave the way for similar arrangements in the future.”

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