The EBRD is lending to a dynamic independent provider of broadband internet and fixed telephony services to help it grow and deliver better services to more subscribers. The long-term Turkish lira loan worth EUR 9.5 million will support TurkNet’s capital expenditure programme.
The capital expenditure programme will enable TurkNet to improve its own infrastructure and reduce its reliance on the incumbent telecom operator. TurkNet is aiming to improve its fibre network coverage in Istanbul, Izmir, Izmit and Bursa, reach out to more users and modernize its services. This will allow the company to improve its margins and continue being a price leader on the local market thanks to its own infrastructure and the bundling of broadband internet and fixed-line telephony.
“The EBRD financing will enable TurkNet to be a step ahead of the market by offering fair prices and good deals. It will mean bringing faster and cheaper internet access to more people in Turkey,” said Izzet Guney, EBRD Director for Information and Communications Technologies.
“This loan will enhance TurkNet's rate of growth. EBRD has demonstrated a sound understanding of our business and has shown great flexibility in tailoring a financing solution in line with our strategic growth plans for expanding our fiber infrastructure in Turkey, and accelerating the roll-out of our telephony and broadband Internet services”, said Mehmet Celebiler, the co-founder and Chairman of TurkNet.
“The telecommunications market in Turkey is emerging in a very rapid manner, whilst the new regulations allow for alternative operators to increase their presence in a market which the incumbent operator is retaining a significant market share. TurkNet has been well positioned to benefiting from the growth in the market through its investments”, added Cem Celebiler, co-founder and CEO of TurkNet.
The EBRD funding is extended under the €400 million Local Enterprise Facility for investments in small and medium-sized enterprises (SMEs) in the Balkans, Turkey and the countries in Southern and eastern Mediterranean, whose needs are not sufficiently addressed by existing financing sources.
Since the beginning of its operations in Turkey in 2009, the EBRD has invested over €2.5 billion in the country, both in direct deals and through credit lines. Last year Turkey became the EBRD’s second largest country of operations with €1.0bn in new investments in 2012 alone.