Türkiye's telecommunications major, Turkcell, said on Monday it has signed a $1 billion Murabaha syndicated loan with the participation of 14 banks to fund investments in 5G and next-generation communication technologies.
This transaction, carried out at a time when rising geopolitical risks in the Middle East are putting pressure on supply chains and making access to financing in the Gulf region more difficult, has been recorded as the largest corporate Murabaha syndication ever executed by a Turkish company, it said in a statement. It also noted that the deal featured a very competitive maturity profile and pricing terms.
"The agreement once again demonstrated Turkcell’s strong credit profile and strategic borrowing capability in international financial markets," it added.
The announcement of the deal comes as the country readies for the transition to 5G, due on April 1, and marks another strategic financing step taken by Turkcell to support the digital future.
The $1 billion Murabaha syndicated loan – attracting strong interest from leading international banks, particularly those based in the Gulf – will provide significant funding for the company’s 5G and next-generation technology investments, according to the company.
Initially planned at $500 million, the transaction received 2.4 times more demand than targeted from international markets, and due to this strong investor interest, the loan amount was increased to $1 billion, it said.
The financing will support Turkcell’s investments primarily in 5G, as well as in next-generation connectivity technologies, digital infrastructure, and future communication solutions.
In the consortium, led by HSBC as the coordinating bank, leading international banks such as Kuwait Finance House, BNP Paribas, Dubai Islamic Bank, Emirates NBD, Gulf Bank, ICBC, and QNB acted as mandated lead arrangers.
The Murabaha syndication, based on interest-free financing principles, supports Turkcell's strategy of diversifying its funding sources while strengthening its long-term investment capacity.
The transaction was priced at an attractive level compared to its peers, with an annual cost fee of SOFR + 2.14%, including a profit rate of SOFR + 1.95% and commissions. The final maturity was set at seven years, exceeding the market-standard five-year term. The first two years of the loan are structured as a grace period.
Commenting on the agreement, Turkcell Group CFO Kamil Kalyon said: "As Turkcell, while we build the technologies of the future, our finance team acts as a bridge supporting this vision with strong financial foundations."
"Digital transformation and advanced technology investments can only shape the world of tomorrow through a solid balance sheet structure and diversified funding sources. The steps we take in this direction aim to sustainably realize both today’s goals and the potential of the future."
"This funding, secured with a maturity of seven years, above market standards, and highly favorable cost conditions, will significantly accelerate our 5G and digital infrastructure investments, while also contributing to the diversification of our funding structure and supporting our long-term growth objectives."