Turkcell Secures US$1 Billion Murabaha Syndication Facility to Boost 5G and Future Connectivity
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Positive)
Tags
Key Terms
murabahafinancial
A murabaha is a Sharia-compliant financing arrangement where a financier buys an asset and then sells it to a client at an agreed markup, with the client repaying in installments. Think of it as a store buying an item for you and letting you pay back the marked-up price over time; there is no interest charge but the profit margin is fixed. Investors care because murabaha changes how revenue and cash flows are recorded, affects credit and liquidity risk, and signals compliance with Islamic finance rules that can broaden or limit a company’s funding sources.
shariah-compliantfinancial
Shariah-compliant describes investments and financial products that follow Islamic law, which generally bans earning money from interest, gambling-like speculation, and businesses tied to alcohol, tobacco or other prohibited activities, and often limits heavy borrowing. Investors use these rules as a filter — like a dietary restriction for money — because they shape which companies are eligible, affect portfolio diversification and attract people seeking faith-aligned or lower-leverage options.
sofrfinancial
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
ISTANBUL--(BUSINESS WIRE)--
Turkcell (NYSE: TKC) (BIST: TCELL), Türkiye’s leading technology and telecommunications company, has signed a landmark US$1 billion syndicated international Murabaha financing with 14 banks. As the largest ever syndicated Islamic financing facility for a Turkish corporate with very competitive maturity profile and pricing terms, the facility will finance Turkcell’s 5G and next-generation communication investments. With the recent escalations in the Middle East with supply chain concerns and challenging financing conditions in the GCC, the transaction underscores Turkcell’s strong credit profile and strategic access to international capital markets.
Kamil Kalyon, Turkcell’s Chief Financial Officer
Strong support for 5G and digital infrastructure investments
As Türkiye prepares to launch 5G on 1 April, Turkcell has taken another key financing phase to support the country’s digital future. The Murabaha Facility was launched to a select group of lenders at US$500m, which then was oversubscribed by c.2.4x attracting very strong interest from top-tier Middle Eastern as well as diversified global and international banks. On the back of the strong demand mainly from the GCC lenders, Turkcell has decided to upsize the Syndicated Murabaha Facility to US$1 Billion to primarily fund investments in 5G, advanced connectivity, digital infrastructure, and future communication solutions.
HSBC acted as the Sole Coordinator and Bookrunner of this landmark Islamic Financing Facility. Mandated Lead Arrangers includes top-tier lenders namely Kuwait Finance House, BNP Paribas, Dubai Islamic Bank, Emirates NBD, Gulf Bank, ICBC, and QNB.
Structured in line with Shariah-compliant interest-free financing principles, the Murabaha syndication aligns with Turkcell’s strategy to diversify funding sources and reinforce long-term sustainable investment capacity. The facility carries an annual profit rate of SOFR + 1.95%, with an all-in cost including fees of SOFR + 2.14% per annum – highly competitive relative to similar deals and in the current market environment. The financing facility has a final maturity of seven years, exceeding the typical five-year market standard, with a two-year grace period on principal repayments.
“Global recognition of Turkcell’s financial strength, operational excellence, and investment vision”
Commenting on the transaction, Kamil Kalyon, Turkcell’s Chief Financial Officer, said: “As Turkcell builds the technologies of the future, our finance team acts as a bridge, supporting this vision with a solid financial foundation. Realising the potential of digital transformation and advanced technology depends on a robust balance sheet and diversified funding sources. Our steps are designed to deliver on today’s objectives while enabling tomorrow’s opportunities on a sustainable path. Given today’s macroeconomic and geopolitical environment, the fact that this syndicated Murabaha financing more than doubled our initial target clearly shows that international investors strongly support Turkcell’s financial strength, solid balance sheet, and investment strategy. With a seven-year tenor and highly attractive, super tight financing terms, this facility will accelerate our 5G and digital infrastructure investments, diversify our funding structure, and support our long-term growth ambitions.”
ABOUT TURKCELL: Turkcell, headquartered in Türkiye, is a leading technology and telecommunications company offering a diverse portfolio of voice, data, and IPTV services across its mobile and fixed networks, alongside digital consumer, enterprise, and techfin solutions. The Turkcell Group operates in three countries: Türkiye, Belarus, and Northern Cyprus. In 2025, Turkcell Group reported revenue of TRY 241 billion, with total assets of TRY 501 billion as of December 31, 2025. Listed on both the NYSE and BIST since July 2000, Turkcell remains the only dual-listed company on these exchanges.
