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China Development Bank provides RMB 695 million loan tranche to Turkcell for infrastructure investments and procurement of equipment and hardware from Chinese suppliers in August 2020 (Linked to Record ID#67356)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Turkcell İletişim Hizmetleri A.Ş. (Turkcell) |
| Country | Turkey |
| Start Date | Aug 07, 2020 |
| End Date | Jun 02, 2029 |
| Duration | 3,221 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 92620 |
Grant Description
China Development Bank provides RMB 695 million loan tranche to Turkcell for infrastructure investments and procurement of equipment and hardware from Chinese suppliers in August 2020 On August 7, 2020, China Development signed an EUR 500 million loan agreement with Turkcell İletişim Hizmetleri A.Ş. (“Turkcell”) — the largest (private) mobile phone operator in Turkey — to finance investments in the company's infrastructure and the procurement of equipment and hardware from Chinese suppliers.
The signing of the loan agreement, which was amended and extended on August 7, 2023, followed the signing of a memorandum of understanding (MOU) between China Development Bank and Turkcell in December 2019.
Record ID#67356 captures the EUR tranche and Record ID#92620 captures the RMB tranche.
As of March 31, 2021 and June 30, 2021, Turkcell had utilized (borrowed) EUR 57.1 million under the EUR 420 million loan tranche and RMB 147.3 million under the RMB 695 million loan tranche.
Additional disbursements of EUR 28,900,000, and EUR 36,603,000, and EUR 26,85,000 under the EUR 420 million loan tranche took place on February 8, 2023, May 29, 2023 and June 21, 2023, respectively. An additional disbursement of RMB 42,073,00 under the RMB 695 million tranche took place on September 6, 2023.
Staff Comments
- AidData has calculated the all-in interest rate of the EUR loan tranche by adding 2.29% to the average 6-month Euribor in August 2020 (-0.433%).
- After the memorandum of understanding was signed, Osman Yılmaz, Executive Vice President of Turkcell Finance, said in his statement, ‘We are planning to be ready for financing in these days when our 5G studies are accelerating with our current technology. Our goal is to meet both our current purchases and 5G purchases that may occur in the future.’
Sources & References
- Notice re Signing of a Long-Term Loan Package
- Turkcell signs 500 mln euro loan MoU with China Development Bank
- INVESTOR PRESENTATION
- TURKCELL GROUP
- CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH INTERIM PERIOD ENDED 30 SEPTEMBER 2023 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Turkcell İletişim Hizmetleri A.Ş. (Turkcell)
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