- Turkcell debut may be 1st sale by a Turkish company in a year
- Emerging-market bond sales slide to four-year low in September
Turkey’s biggest mobile operator may be the first corporate issuer to seek funding from the international bond market in more than a year.
Turkcell Iletisim Hizmetleri AS, or Turkcell, is looking to raise between $500 million and $1 billion in a 10-year bond and is ready to sell any time that markets turn favorable, according to a person familiar with the plans who asked not to be identified because the information is private. The company is not in need of an immediate sale, the person said.
The first foreign bond sale for the company would come as investors are shying away from riskier assets, with new offerings by emerging-market borrowers dropping to the lowest in four years in September. The average yield on corporate dollar bonds for developing nations rose more than 60 basis points to 6.9 percent this month, the Bloomberg USD Emerging Market Corporate Bond Index shows.
A Turkcell spokesman declined to comment on the possible sale on Wednesday when contacted by Bloomberg News.
If sold, proceeds from the bonds would be used to finance part of the acquisition fee of 1.62 billion euros ($1.81 billion) for 4.5G licenses from the Turkish government in August, the person said.
Turkcell on Tuesday agreed to borrow $1.25 billion from the China Development Bank in two tranches and also got a two-tranche club loan of $500 million and 445 million euros from BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, ING Groep NV and Intesa Sanpaolo SpA on Sept. 17. The loans were part of a plan announced in August to borrow as much as $3 billion from international markets to finance infrastructure investments, debt restructuring and potential acquisitions.
Turkcell is the first non-financial entity to raise debt in a year. Arcelik AS, the country’s biggest maker of home appliances, sold 350 million euros in a seven-year note in September 2014.
Turkcell is owned by Sweden’s TeliaSonera AB, Russian billionaire Mikhail Fridman’s Alfa Group and Cukurova Holding AS of Turkey. The company hired BNP, Citigroup, HSBC for bond investor meetings in Europe and the U.S. set to conclude on Sept. 23.