Turkcell signs €500m MoU with China Development Bank

Turkcell signs €500m MoU with China Development Bank

Osman Yilmaz Turkcell NEW.jpg

Turkcell has entered into a Memorandum of Understanding (MoU) worth €500 million with China Development Bank.

With a loan term 8 years and supported by growing demand from both corporate and retail customers, the new financing will be used to finance purchase hardware and equipment from Chinese vendors. Both parties have already begun work on the structuring and execution of the loan.

As we work on strengthening our existing technology and 5G preparations, we are also planning for financing,” said Osman Yilmaz (pictured), executive vice president of finance, Turkcell. “This long-term and cost-effective loan facility is intended to support the financing of our next 3-year procurement in step with our plan. We aim to sign the facility agreement, through which our ongoing and potential 5G investments will be financed, in the first quarter of next year. We consider this development to be an important indication of confidence in both our company and country and hope that it will pave the way for similar arrangements in the future.”

The news comes as the company recently announced its 3-year targets confirming a strategic focus in certain areas as well as next-gen technology investments. Additionally, the stabilising macro-economy environment in Turkey as well as the company’s long-term strategy are all contributing factors to Turkcell’s growth.

During the announcement, the company confirmed its targets for 2020-2022 as revenue growth of 13%-16. In addition, it will focus on growing its subscriber base by 1 million a year, accelerating digital service revenues, expanding its ICT solutions for corporates and providing new techfin solutions.

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