Hepsiburada Announces the Fourth Bond Issuance of Hepsifinans

Rhea-AI Summary

Hepsiburada (NASDAQ: HEPS) announced that its subsidiary Hepsifinans has completed its fourth bond issuance worth TRY 66.95 million to domestic qualified investors. The bonds, issued on April 30, 2025, come with a six-month maturity and will accrue interest at 52.00% per annum. Both principal and coupon payments will be made at maturity. This issuance is part of Hepsifinans's previously approved bond program with a total limit of TRY 1.05 billion. The funds raised will be used to grow Hepsifinans's consumer finance business sustainably.

Positive

• New bond issuance provides additional TRY 66.95 million in funding for business growth
• Part of a larger approved bond program worth TRY 1.05 billion, showing significant funding capacity
• Successful placement to qualified investors demonstrates market confidence

Negative

• High interest rate of 52% per annum indicates significant borrowing costs
• Short-term maturity of six months may create refinancing pressure
• Increased debt levels could impact company's financial flexibility

Insights

Financial Analyst

Hepsiburada's financing arm issued TRY 67M bonds at 52% interest rate to fund consumer finance growth strategy.

Hepsiburada's subsidiary Hepsifinans has completed its fourth bond issuance worth TRY 66,950,000 with a notably high 52% annual interest rate and six-month maturity. This represents the latest tranche in an ongoing program approved last September, which authorized the company to issue up to TRY 1,050,000,000 in debt instruments within a one-year period.

The structure of this bond issue is straightforward: principal and interest will be paid in a single bullet payment at maturity rather than through periodic interest payments. This approach minimizes near-term cash outflows but creates a significant single repayment obligation in six months.

What's particularly noteworthy is the 52% interest rate, which reflects Turkey's current high inflation environment. This financing cost is substantial by global standards but aligns with prevailing Turkish market rates. The company must believe its consumer finance business can generate returns exceeding this high capital cost.

This issuance represents approximately 6.4% of the total authorized program amount, suggesting a measured approach to tapping debt markets. By explicitly stating these funds will "sustainably grow its consumer finance business," management signals continued commitment to expanding this business line despite the high cost of capital.

This development indicates normal execution of Hepsiburada's previously announced funding strategy rather than representing an extraordinary positive or negative event.

ISTANBUL, May 03, 2025 (GLOBE NEWSWIRE) -- D-MARKET Electronic Services & Trading (d/b/a “Hepsiburada”) (NASDAQ: HEPS), a leading Turkish e-commerce platform, today announced the fourth bond issuance of its indirect wholly owned subsidiary, Hepsi Finansman A.Ş. (“Hepsifinans”), at a nominal value of TRY 66,950,000.

Further to our disclosure in a report on Form 6-K furnished on September 11, 2024 regarding the Capital Markets Board’s approval of Hepsifinans’s issuance of bonds or bills with a total aggregate principal amount of up to TRY 1,050,000,000 in one or more tranches within one year, Hepsiburada announces that Hepsifinans closed its fourth bond issuance to domestic qualified investors on April 30, 2025. The bonds have an aggregate principal amount of TRY 66,950,000 with a six-month maturity. The bonds will accrue interest at a rate of 52.00% per annum. The principal and the coupon of the bonds will be repaid at maturity. Hepsifinans will use the funds raised to sustainably grow its consumer finance business.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, and encompasses all statements, other than statements of historical fact contained in this press release. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to” and similar statements. These forward-looking statements are based on management’s current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Hepsiburada’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, potential negative developments resulting from epidemics or natural disasters, other negative developments in Hepsiburada’s business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. For a discussion of additional factors that may affect the outcome of such forward-looking statements, see our 2024 annual report filed with the SEC on Form 20-F on April 30, 2025 (Commission File Number: 001-40553), and in particular the “Risk Factors” section, as well as the other documents filed with or furnished to the SEC by Hepsiburada from time to time. Copies of these filings are available online from the SEC at www.sec.gov, or on the SEC Filings section of our Investor Relations website at https://investors.hepsiburada.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing Hepsiburada’s views as of any date subsequent to the date of this press release. All forward-looking statements in this press release are based on information currently available to Hepsiburada, and Hepsiburada and its authorized representatives assume no obligation to update these forward-looking statements in light of new information or future events. Accordingly, undue reliance should not be placed upon the forward-looking statements.

About Hepsiburada

Hepsiburada is a leading e-commerce technology platform in Türkiye, operating through a hybrid model that combines first-party direct sales (1P) and a third-party marketplace (3P) with approximately 100 thousand merchants.

With its vision of leading the digitalization of commerce, Hepsiburada serves as a reliable, innovative and purpose-driven companion in consumers’ daily lives. Hepsiburada’s e-commerce platform offers a broad ecosystem of capabilities for merchants and consumers including last-mile delivery, fulfilment services, advertising solutions, cross-border sales, payment services and affordability solutions. Hepsiburada’s integrated fintech platform, Hepsipay, provides secure payment solutions, including digital wallets, general-purpose loans, buy now pay later (BNPL) and one-click checkout, enhancing shopping convenience for consumers across online and offline while driving higher sales conversions for merchants.

Since its founding in 2000, Hepsiburada has been purpose-driven, leveraging its digital capabilities to empower women in the Turkish economy. In 2017, Hepsiburada launched the ‘Technology Empowerment for Women Entrepreneurs’ program, which has supported approximately 61 thousand female entrepreneurs across Türkiye in reaching millions of customers.

Investor Relations Contact
ir@hepsiburada.com

Media Contact
corporatecommunications@hepsiburada.com

FAQ

What is the size and interest rate of Hepsiburada's (HEPS) latest bond issuance?

Hepsiburada's subsidiary Hepsifinans issued bonds worth TRY 66.95 million with an interest rate of 52.00% per annum.

When will Hepsiburada's (HEPS) new bonds mature?

The bonds have a six-month maturity, with both principal and coupon payments due at maturity.

What is the total bond issuance limit approved for Hepsifinans?

Hepsifinans has approval to issue bonds up to TRY 1.05 billion in total within one year.

How will Hepsiburada (HEPS) use the proceeds from the bond issuance?

The funds raised will be used to sustainably grow Hepsifinans's consumer finance business.