Owner of Turk Telekom reportedly misses payment on $4.8bn loan

By bne IntelliNews October 13, 2016

Turk Telekom's majority owner Otas missed a payment in September on a $4.75bn syndicated loan as the depreciation of the lira against the dollar eroded the dividends it receives in local currency and its parent company struggles in other industries, people familiar with the issue told Bloomberg on October 12.

Otas, a special purpose vehicle formally known as Ojer Telekomunikasyon, owns 55% of Turkey’s largest telecom company. Otas is a unit of Dubai-based Oger Telecom, which is owned by Saudi Oger group and Saudi Telecom Co. 

Otas received the syndicated loan with maturities of 5 years to 7.75 years in 2013 to refinance and extend existing debt and pay a dividend, according to the news agency. According to the sources, the missed payment was $290mn and Otas sought an extension for payment until the end of October from 29 lenders. Akbank, Citigroup Inc., JPMorgan Chas & Co., BNP Paribas, Deutsche Bank AG and Garanti Bankasi were bookrunners and lead arrangers in the loan agreement, Bloomberg says.

“We are in discussions with Otas lenders and shareholders to ensure a solution is agreed to the satisfaction of all stakeholders,” Otas told the news agency.

Turk Telekom's net income fell by 26% y/y to TRY248mn (€73mn) in the second quarter of 2016. Turkey’s Treasury holds a 30% stake in Turk Telekom, while and 15% of the company's shares are traded on the stock exchange. Last year, the company paid out TRY841mn (or TRY0.24 dividend per share) in dividends, down from the previous year’s TRY1.84bn (TRY0.53 per share) and TRY912mn (TRY0.26 per share) in 2013. Its assets stood at TRY26.6bn as of end-June. Turk Telekom’s net debt was TRY10.5bn in Q2, up from TRY8.8bn in the previous quarter and TRY8.4bn in the second quarter of 2015.

The lira has weakened nearly 6% against the dollar this year. Shares in Turkey Telekom were up 0.53% at TRY5.65 on October 12.

Related Articles

Fitch affirms Kazakh uranium miner Kazatomprom 'BBB-'

Fitch Ratings has affirmed the long-term foreign currency issuer default rating (IDR) of Kazakhstan's state-owned uranium miner Kazatomprom at 'BBB-' with a stable outlook. ... more

Higher rates not helping Turkish lira as it slides towards new record lows

The Turkish lira hit to a new historic low of 3.4768 against the US dollar in early trading hours of November 25, a day after the ... more

Russia's Rosneft approves $17bn worth of borrowing

Russia's state-controlled oil giant Rosneft has approved borrowing RUB1.07 trillion ($16.6bn) in 10-year foreign currency bonds, Vedomosti daily reported on November 25. ... more

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

Thank you. Please complete your registration by confirming your email address. A confirmation email has been sent to the email address you provided.

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

IntelliNews Pro subscribers click here

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss