Tekfen to Support Sustainability-Focused Investments with New Financial Instruments

Tekfen, steering its course toward sustainability-focused investments in the context of strategic transformation and change, continues to diversify its funding base with new financial instruments, both to implement new investments and to strengthen the capital bases of group companies.

Tekfen Holding signed a USD 95 million syndicated loan agreement with variable interest rates and a three-year maturity, led by Yapı Kredi Bankası and including Akbank, Alternatif Bank and Aktif Bank. Following strong demand for a TRY 250 million financing bond issuance initially arranged through Doğan Yatırım Bankası domestically, the company raised total demand of TRY 500 million.

Hakan Dündar, Deputy Chairman of Finance at Tekfen Holding, stated that they will manage their strategic plan investments using funds from the syndicated loan and financing bond issuance, saying: "At Tekfen, drawing strength from our business culture and experience, we are working to carry our group forward according to our business model and new strategy based on technology, innovation and sustainability. In the changing global order, new energy sources and decarbonization are coming to the forefront. For us too, the transformation toward green energy is among the most important priorities we are pursuing for this purpose.

Using the ecosystem emerging from our construction, engineering, manufacturing and agriculture business lines, we aim to be a pioneer in green hydrogen and green ammonia investments. To support this goal, we are planning a green ammonia facility investment in Turkey as a first step. The new strategy put forward by our group certainly requires serious financing. In this regard, we are basing ourselves on our sustainability approach and creating sustainable financial sources."

Syndicated loan signed with participation of Akbank, Alternatif Bank and Aktif Bank under Yapı Kredi leadership

In line with its approach to creating sustainable financing, Tekfen secured an important syndicated loan of USD 95 million with variable interest rates and a three-year maturity, led by Yapı Kredi Bankası with participation from Akbank, Alternatif Bank and Aktif Bank.

Hakan Dündar, noting that as a strong market player Tekfen is among the few companies in Turkey with high credibility to execute major financial transactions, said: "We aim for Tekfen to be a more innovative and active player in markets with more innovative instruments. In this direction, we have created another important financing source that will provide our company with financial maneuvering capability. With the resources obtained from the syndicated loan and financing bond issuance, which we consider an important part of Tekfen Holding's new strategy, we will not only take steps in the renewable energy sector, positioned as our fourth business line with a sustainability focus, but also make an important contribution to strengthening the capital of our Group Companies."

First step toward new financial instruments taken with financing bond issuance

Tekfen Holding continues to diversify its funding base with new financial instruments, leveraging the credibility it holds in the market. Following the syndicated loan, Dündar stated that they completed a financing bond issuance through Doğan Yatırım Bankası under the issuance limit approved by the Capital Markets Board (CMB), saying: "We are carrying our companies into the future through more centralized and larger-scale financing initiatives. We view the financing bond issuance as part of Tekfen Holding's strategy to diversify its financial instruments and provide financing in accordance with long-term sustainable growth targets.

Following our application to the CMB and approval of our issuance limit, the issuance conducted through a sales method to qualified investors found its market quickly, and with approximately three times oversubscription, it concluded at TRY 500 million. This successful issuance, executed through Doğan Yatırım Bankası, has once again demonstrated Tekfen Holding's trustworthiness in the eyes of investors. We thank all our investors who have placed their confidence in us."