The European Bank for Reconstruction and Development (EBRD) is supporting Zorlu Osmangazi's debut bond issuance in a new 70 million Turkish liras (€15 million equivalent) capital markets transaction in Turkey, the EBRD announced on Wednesday.
The transaction is part of the EBRD's efforts to promote corporate bonds denominated in Turkish lira as financial instruments for companies whose costs and revenues are in local currency.
The Bank has invested in the three-year 140 million-lira tranche of the bond that uses the Turkish Lira Interbank Offered Rate as its benchmark rate.
The total amount issued by the company, including the shorter-tenor 1.5-year tranche, was 175 million liras, EBRD noted, adding the bonds will be listed on Borsa Istanbul, Turkey's sole stock exchange.
Zorlu Osmangazi is tapping capital markets to partly finance its four-year investment program, which includes the replacement, upgrade and expansion of its network to meet growing demand in a key industrial region, the EBRD said.
'These help them [companies] avoid foreign exchange risk as they raise finance,' the Bank underlined.
'At the EBRD we are a strong advocate of local-currency corporate bonds with longer tenors and greater transparency. We are pleased that our backing helps Turkish corporates, such as Zorlu Enerji, attract a wider pool of international investors as they access capital markets for much-needed finance,' Arvid Tuerkner, EBRD managing director for Turkey, was quoted as saying.
A subsidiary of Zorlu Enerji and part of the Turkish conglomerate Zorlu Holding, Zorlu Osmangazi carries out electricity distribution and sales services in five Turkish provinces including Eskisehir, Kutahya, Afyon, Usak and Bilecik, which together make up the Osmangazi region of Turkey.
Through its subsidiaries, Zorlu Osmangazi serves more than 2.5 million people.
By Ebru Sengul
Anadolu Agency
energy@aa.com.tr