Page 51 - TURKRptDec20

Turkey Wealth Fund (TWF/TVF) controls a 49% stake in Turkish Airlines. In October, TVF head Zafer Sonmez denied claims of an upcoming stake sale in the flag carrier.
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.
VTB Capital has advised that the second coronavirus (COVID-19) wave lockdowns will lead to 85% y/y lower traffic for Turkish Airlines in November and December, after the 71% decline in September.
It sees the Turkish flag carrier’s traffic in 2020 and 2021 at 68% and 38% below the 2019 figures.
In July, Turkish Airlines had $1.8bn of cash while, since then, on VTB’s numbers, it has burnt through some $0.7bn, “which means it can last another five months”.
It also has $2.7bn of credit lines.
Turkish Airlines has no rival in terms of its net FX deficit, carried on in its balance sheet, among Borsa Istanbul companies.
Its deficit rose further to $11.4bn at end-September from $9.23bn at end-June.
Low-cost Turkish carrier Pegasus Airlines is also among the leading FX deficit carriers with $700mn, or 19% of total assets, at end-June. It will release its Q3 financials on November 9.
Moody’s Investors Service sees Turkish Airlines at B3/Negative, six notches below investment grade and one notch below Turkey’s sovereign rating, while Standard and Poor’s rates the company at B/Negative, five notches below investment grade and one notch below Turkey’s sovereign rating.
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.
Turkey’s airlines need $750mn to survive through 2020 and $2bn in total to survive through next year too, Mehmet Nane, CEO of Pegasus Airlines (PGSUS), told BloombergHT on September 10.
The airlines reported derivative losses on jet fuel hedges due to tumbling oil prices in the second quarter, according to Nane.
Pegasus has placed $300mn of orders for six aircraft this year and $500mn of orders for nine aircraft next year, Nane also pointed out.
Turkish Airlines ​served​ only 2.4mn people in October, down 63.5% y/y​.
8.2.3​ Agriculture corporate news
Fitch ​views​ the possibility that Ulker may acquire related-party entities that are ultimately owned by shareholder Yildiz​ as increasingly likely over the next two to three years.
In 2018, Yildiz struck a deal for Turkey’s largest ever debt restructuring, covering $6.5bn of debt. It restructured the debt again, in August this year.
51​ TURKEY Country Report​ December 2020 ​ ​www.intellinews.com