Turkish telecom operator Turkcell on Thursday stated it goals to ramp up funding this 12 months to arrange its new knowledge heart and grid for 5G companies, and will resort to issuing eurobonds or sukuk in worldwide markets to finance these plans.
The firm penciled in an quantity equal to nearly 1 / 4, or 23%, of its income this 12 months for investments, CEO Ali Taha Koç stated. That would mark a 2.4 share level enhance in funding spending in comparison with 2023.
Koç stated the principle causes for which can be the info heart, solar energy plant and 5G community preparation.
“The most important of them all is to be ready for 5G. We need to install fiber optic cables to base stations so that they can handle the high capacity that is necessary for 5G. We need to prepare our infrastructure. We are heavily investing in our grid, that is why our capital expenditure is high,” Koç stated.
Speaking to reporters late on Thursday, he stated the corporate has budgeted for a 300-megawatt (MW) solar energy plant by 2026.
Kamil Kalyon, the corporate’s CFO, talked about that Turkcell would make the most of cost-effective loans and likewise borrow from worldwide markets for “green investments.”
“We have previous experience with eurobond issuance, and this year we will have additional borrowing opportunities in international markets,” Kalyon stated.
He highlighted that Turkcell was contemplating borrowing via eurobonds and sukuk, and emphasised potential in areas such because the Gulf Arab nations the place there was vital curiosity within the firm.
Regarding regulatory approvals, Kalyon said that moreover the Capital Markets Board (SPK), Turkcell additionally wanted permission from the Information and Communication Technologies Authority (BTK) earlier than issuing bonds. However, he didn’t present a selected timeline for the method.
Koç additionally stated they’ll have a look at the international investor curiosity for the deliberate preliminary public choices (IPOs) of Superonline, Global Tower and Paycell.
He stated the present market situations don’t pose an atmosphere for the proper valuation of those models for a public providing.
“In these public offerings, international investors need to come to Türkiye and show demand. It has to be ready and appropriate. In such an environment, we are always open to IPOs … We believe it will be valued at the right time and at the right value. We do not think such an environment exists now,” Koç defined.
Among others, Koç additionally talked about that regardless of a “precautionary measure” taken by the court docket for the sale of its subsidiary Lifecell in Ukraine, the method was ongoing.
“On March 5, a court decision came regarding Lifecell. Thanks to the discussions we had during the closing process and the negotiations conducted by regulatory authorities, the process is ongoing. There is no problem. This was an expected process. Our Lifecell team appealed, and the process continues,” he stated.
Turkcell operates Ukraine’s third-largest cellular community and had reached an settlement on the finish of final 12 months to promote its Ukrainian belongings to NJJ Capital, stating their worth at $525 million.
Koç additionally disclosed that Turkcell was in talks for a international knowledge heart and cloud infrastructure operator, which it phrases “hyperscalers,” to enter Türkiye.
“Partnership-style discussions are being held regarding hyperscalers. It wouldn’t be appropriate to go into details.”
Source: www.dailysabah.com