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Overview

China Eximbank provides EUR 80 million loan to Türk Telekom to finance its investments, strategic initiatives and growth plans

Commitments (Constant USD, 2023)$86,501,490
Commitment Year•2023Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 1, 2023
Last repayment (originally scheduled)
Apr 29, 2028

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

  • Türk Telekom

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

China Eximbank provides EUR 80 million syndicated loan to Türk Telekom to finance its investments, strategic initiatives and growth plans

Grant element•9.8105%Interest rate (t₀)•5.045%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Narrative

Full Description

Project narrative

In May 2023, Türk Telekomünikasyon A.Ş. (“Türk Telekom”) — a private telecommunications company — signed a EUR 80 million loan agreement with the Export-Import Bank of China. The loan carries a 5-year maturity (final maturity: May 2028) and an annual interest rate of EURIBOR plus a 1.4% margin. It is backed by a Sinosure credit insurance policy. The total cost of borrowing, including the Sinosure insurance premium and other upfront costs, is EURIBOR plus a 2.79% margin. The borrower is expected to use the proceeds of the loan to finance its investments, strategic initiatives and growth plans.

Staff comments

1. The all-in pricing of the loan — including the insurance premium and the other upfront costs — is EURIBOR plus a 2.79% margin. 2. Türk Telekom was a state-owned enterprise until it was privatized in 2005. In November 2005, 55% of Türk Telekom was sold to Oger Telecom’s Joint Venture Group. 3. AidData has calculated the all-in interest rate of the loan by adding 1.4% to the average 6-month Euribor in May 2022 (-.076%).