Turkcell Gets Loan Agreement

Turkcell arranges partial funding for 3G investments

Turkey’s largest mobile phone operator, Turkcell (TKC), has executed a loan agreement for $285 million to part finance its investments of $750 million in second- and third-generation network related expenditures. The procurement will be made from Ericsson AB and Ericsson Telekomünikasyon A.Ş.

The financing is being provided by Calyon Credit Agricole Bank and Nordea Bank with partial or total guarantee of Swedish Export Credits Guarantee Board and assurance from the Swedish Export Credit Corporation. The loan is unsecured and carries an interest of 4%-4.25% per annum. The maturity period is five years and interest is payable semiannually.

On November 28th, 2008, Turkcell was been granted a the A Type license providing the widest frequency band, for a consideration of €358 million, excluding VAT, following the 3G tender for the issue of the four separate licenses by the Information and Communication Technologies Authority (ICTA) regarding the authorization for providing IMT 2000/UMTS services and infrastructure.

On April 30th, 2009, Turkcell signed a license agreement with the ICTA and paid €422.4 million, including VAT, to the Turkish Treasury.

We maintain a bearish outlook on TKC.

Read the full analyst report on TKC