International Ice Hockey Federation (IIHF) has stripped Belarus of the right to hold the World Championship this year
Russian opposition activist Alexei Navalny arrested on arrival as he returns home
LONG READ: The oligarch problem
COVID-19 and Trump’s indifference helped human rights abusers in 2020
Jailed Russian opposition activist Navalny drops Putin corruption investigation bomb on his second day home
Russian opposition activist Navalny calls for supporters to take to the streets this weekend
Western Balkans and Ukraine urged to scrutinise coal subsidies
Oligarchs trying to derail Ukraine’s privatisation programme, warns the head of Ukraine’s State Property Fund
VISEGRAD BLOG: Central Europe's populists need a new strategy for Biden
OUTLOOK 2021 Lithuania
EBRD says loan to Estonia’s controversial Porto Franco project was never disbursed
Czech Pirates and Mayors approve final coalition agreement for 2021 elections
OUTLOOK 2021 Czechia
Hungarian vehicle makers hit by supply chain shortage
OUTLOOK 2021 Poland
OUTLOOK 2021 Slovakia
BRICKS & MORTAR: Rosier future beckons for CEE retailers after year of change and disruption
FDI inflows to CEE down 58% in 1H20 but rebound expected
BALKAN BLOG: US approach to switch from quick-fix dealmaking to experience and cooperation
Corona-induced slump in global clothing sector dragged down Albania’s 2020 exports
BALKAN BLOG: The controversial recipe for building up Albania
Heavy flooding causes chaos in parts of Southeast Europe
Turnover rose on Bosnia's two stock exchanges in 2020 while prices fell
Bulgaria’s government considers gradual easing of COVID-related restrictions
Sofia-based LAUNCHub Ventures holds first close of new fund on €44mn
ING THINK: Growth in the Balkans: from zero to hero again?
Spring lockdown caused spike in online transactions in Croatia
Labour demand down 28% y/y in Croatia in 2020
OUTLOOK 2021 Kosovo
OUTLOOK 2021 Moldova
Storming parliaments: New Europe's greatest hits
World Bank revises projection for Moldova’s 2020 GDP decline to 7.2%
Moldova’s PM resigns to prepare the ground for early elections
Montenegrins say state administration is most corrupt institution
75% of Montenegrins want EU membership
North Macedonia's manufacturing confidence indicator down by 8.5 pp y/y in December
OUTLOOK 2021 North Macedonia
OUTLOOK 2021 Romania
Romania’s central bank cuts monetary policy rate by 25bp to 1.25%
Romanian construction companies' activity slows in November after intense 2020
OUTLOOK 2021 Serbia
Slovenia’s opposition files no-confidence motion against Jansa cabinet
Slovenia’s government to release funds to news agency STA after EU pressure
UK Moneyhub picks Slovenia for post-Brexit European base
Slovenia’s dire COVID-19 situation in 4Q20 caused second economic dip
ISTANBUL BLOG: Biden must find a way to work with Trump’s strongman pal Erdogan
Turkcell denies any affiliation with $1.6bn loan in default extended by Ziraat Bank to Virgin Islands company
BEYOND THE BOSPORUS: Let’s tentatively pencil in a date for Turkey’s hot money outflow
CAUCASUS BLOG : What can Biden offer the Caucasus and Stans, all but forgotten about by Trump?
Armenia ‘to extend life of its 1970s Metsamor nuclear power plant after 2026’
OUTLOOK 2021 Armenia
COMMENT: Record high debt levels will slow post-coronavirus recovery, threaten some countries' financial stability, says IIF
OUTLOOK 2021 Georgia
Georgia’s political kingpin Bidzina Ivanishvili quits politics
TEHRAN BLOG: Will Biden bet on a quick return to the Iran nuclear deal?
Tehran Stock Exchange chief quits amid “Black Monday” fury
Durov rejects Western funds’ offer to buy 5%-10% of Telegram with $30bn valuation
Central Asia vaccination plans underwhelm, but governments look unruffled
Fears of authoritarianism as Kyrgyz populist wins landslide and backing for ‘Khanstitution’
Mongolia's winter dzud set to be one of most extreme on record says Red Cross
Mongolian coal exports to China paralysed as Beijing demands virus testing of truck drivers
Mongolia fears economic damage as country faces up to its first local transmissions of coronavirus
Mongolia in lockdown after suffering first local coronavirus transmissions
OUTLOOK 2021 Tajikistan
OUTLOOK 2021 Turkmenistan
Turkmenistan: How the Grinch stole New Year
COMMENT: Uzbekistan is being transformed, but where are the democratic reforms?
Download the pdf version
Ulker Biskuvi (ULKER), Turkey’s leading confectionery maker owned by Yildiz Holding, has mandated Merrill Lynch, JPMorgan and HSBC to hold investor meetings from October 19 in the UK and US to sell eurobonds, the company said on October 19 in a stock exchange filing.
The ultimate decision on whether to move ahead with a bond issuance and the amount and terms of the issue will be determined based on market conditions after the investor meetings, it added.
Ulker is looking to sell 5-year or 7-year USD papers, unnamed bankers told Reuters on October 20.
On October 16, Ulker said it has received approval from the Turkish Capital Markets Board (SPK) to sell up to $750mn of papers abroad.
Three days later, Fitch Ratings assigned a first-time rating of ‘BB-(EXP/Expected)-Negative’, three notches below investment grade to Ulker and its upcoming senior unsecured eurobonds. It was issued in parallel with Turkey’s sovereign rating and country ceiling. The assignment of final ratings will be contingent on the receipt of final documents conforming to information already received and the refinancing of a syndicated loan due in November 2020 with eurobond proceeds, Fitch noted.
In April, Ulker renewed a 3-year $375mn loan with a 121% rollover rate. Like that loan, its $450mn syndicated loan, mentioned by Fitch, was signed in 2017.
Also on October 19, Standard & Poor’s assigned a first-time rating of B+/Stable, four notches below investment grade, to Ulker and its upcoming paper in parallel to Turkey’s sovereign rating.
Ulker’s sizable cash deposit held at the ultimate parent company, Yildiz Holding, mitigates refinancing risks and Yildiz Holding does not negatively affect Ulker's credit standing, in S&P’s view.
S&P also noted that Ulker will use the proceedings from eurobonds to refinance its Turkish lira (TRY) 3.7bn worth of debt, 43% of the company’s total debt, due November this year.
In 2006, Ulker said in a stock exchange filing that it established a Luxemburg-based subsidiary, namely Ulker Finance SA, and it mandated ABN Amro and Dresdner Kleinwort to sell eurobonds.
However, the auction was not held and subsequently Ulker Finance appeared to have been liquidated.
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.
Turkey’s two eurobond deals this year—both of them sovereign—compare with as many as 18 in a normal year, Mustafa Bagriacik of JPMorgan told Bloomberg on October 20.
'More of a cost concern'
“Corporate issuances are more of a cost concern rather than a matter of accessibility. We have a strong pipeline for the upcoming period,” Bagriacik added.
JP was among the bookrunners for the Turkish Treasury’s latest $2.5bn 5-year auction, which priced at more than 600bp higher than US Treasuries.
On October 20, BloombergHT reported that the Turkey Wealth Fund (TWF/TVF), had cancelled an auction for the sale of 5-year USD eurobonds after holding investor meetings on October 13.
Asked for yields over the sovereign from investors were higher than Turkish officials expected, a person familiar with the matter told Bloomberg News. TVF was set up as a sovereign wealth fund (SWF) by Ankara even though Turkey lacks vast natural resources to generate profits for it, the usual process that a country pursues with an SWF. President Recep Tayyip Erdogan sits at the head of the fund.
here to continue reading this article
and 5 more for free or purchase
12 months full website access including
the bne Magazine for just $250/year.
Register to read the bne monthly magazine for
Password could contain only
and have 8-20 symbols length.
Please complete your registration by confirming your
A confirmation email has been sent to the email
address you provided.
can't be empty.
No user with
this email address.
Access recovery request has expired, or you are using
the wrong recovery token. Please, try again.
Access recover request has expired.
Please, try again.
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
If you have any questions please contact us at email@example.com
Sorry, but you have used all your free articles fro
this month for bne IntelliNews. Subscribe
to continue reading for only $119 per year.
Your subscription includes:
For the meantime we are also offering a free
digital weekly newspaper to subscribers to
the online package.
Click here for more subscription options,
including to the print version of our
flagship monthly magazine:
Take a trial to our premium daily news
service aimed at professional investors that
covers the 30 countries of emerging
For any other enquiries about our
products or corporate discounts please
contact us at
If you no longer wish to receive
Magazine annual print
Website & Archive
Combined package: web
access & magazine print
Take a trial to our premium daily news service
aimed at professional investors that
covers the 30 countries of emerging Europe: