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Overview

Bank of China (Grand Cayman Branch) participates in EUR 200 million syndicated loan to Türk Telekom to support its investments, strategic initiatives and growth plans in 2022

Commitments (Constant USD, 2023)$49,732,586
Commitment Year•2022Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeyOverseas Jurisdiction•Cayman IslandsSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2022
Last repayment (originally scheduled)
Oct 31, 2027

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 Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

  • Türk Telekom

Implementing agencies

Private Sector

  • Türk Telekom

State-owned Commercial Banks

  • Bank of China (Turkey A.Ş.)

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

BOC and China Eximbank contributions to EUR 200 million syndicated loan to Türk Telekom in November 2022

Grant element•12.8825%Interest rate (t₀)•3.568%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Narrative

Full Description

Project narrative

In November 2022, Türk Telekomünikasyon A.Ş. (“Türk Telekom”) — a private telecommunications company —signed an EUR 200 million loan agreement with a syndicate of Chinese state-owned banks. The members of the syndicate include the Shenzhen, Cayman and Hungary Branches of Bank of China Ltd. (captured via Record ID#96141) and the Export-Import Bank of China (collectively known as "Original Creditors”) (captured via Record#100919). Bank of China Turkey A.Ş. plays a role as the Intermediary Bank. The proceeds of the loan are to be used by the borrower to support its investments, strategic initiatives and growth plans. The loan carried a 5-year maturity (final maturity date: December 2027) and the annual interest rate is EURIBOR plus a 1.40% margin. The total cost of borrowing — including the cost of a Sinosure insurance premium and other cash costs — is EURIBOR plus a 2.76% margin annually.

Staff comments

1. The all-in pricing of the loan — including the insurance premium and the other upfront costs — is EURIBOR plus a 2.76% 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 November 2022 (2.3%). 4. The individual financial contributions of the members of the syndicate are unknown. For the time being, AidData assumes equal contributions (EUR 50 million) across the four members of the syndicate. 5. Bank of China Turkey A.Ş. served as the Facility Agent.