Page 55 - TURKRptNov19

Last month, the flag carrier received regulatory approval from the Capital Markets Board (SPK) to issue up to $2bn worth of eurobonds abroad.
In May, two unnamed people with knowledge of the matter told Bloomberg that Turkish Airlines had sent a request for proposals to international lenders for options including a conventional bond or sukuk.
The debt was likely to have a maturity of five-to-10 years, according to the sources.
The airline has hit some business turbulence with its move to Turkey’s new mega airport, Istanbul Airport, where operations have not commenced as smoothly as was hoped for.
In March 2015, Turkish Airlines issued its first international bonds, raising about $328mn via USD-denominated Enhanced Equipment Trust Certificates.
The certificates due March 2027 pay a 4.2% annual coupon and are listed on the Irish Stock Exchange.
Standard & Poor’s rates the airline at B+/Stable and Moody’s Investor Services at B1.
Mersin Port receives approval for eurobonds​. On October 17, the SPK’s weekly bulletin showed that Mersin International Port (MIP- Mersin Uluslararasi Liman Isletmeciligi), a JV between Singapore's PSA International and Akfen Holding of Turkey, has received approval to issue up to $650mn worth of eurobonds.
In August 2013, MIP issued $450mn worth of seven-year eurobonds due August 2020 at a coupon rate of 5.875%.
At issuance, the papers was provisionally rated Investment Grade by both Moody’s (Baa3) and Fitch (BBB-).
It was recorded as Turkey’s first ever infrastructure bond issue. The European Bank for Reconstruction and Development (EBRD) bought $79.5mn of the paper.
On September 4, MIP said in a written statement that its eurobonds, listed on the Irish Stock Exchange, had become callable at par and that it was “closely monitoring opportunities to refinance the notes in the capital markets in the available financing windows between now and the maturity date”.
PSA-Akfen placed a winning bid of $755mn in 2005 to operate Mersin port, located on the eastern Mediterranean coast, for 36 years. It took over the port in May 2007.
The port handled 1.43mn TEUs, up 16% y/y, in January-September while MIP
55​ TURKEY Country Report​ November 2019 ​ ​www.intellinews.com