EBRD invests in fresh lira-denominated bond by Migros

By Olga Rosca

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investment of TRY 30.8 million from EBRD in latest bond of leading supermarket chain

  • Investment of TRY 30.8 million from EBRD in latest bond of leading supermarket chain
  • Migros taps into capital markets to further reduce its foreign currency exposure
  • Deepening local currency and capital markets in the country is a priority for EBRD

In an attempt to boost Turkey’s local currency and capital markets, the EBRD has invested TRY 30.8 million in the latest bond issued by the country’s leading supermarket operator, Migros. The bond had a total volume of TRY 200 million.

Migros operates in 81 Turkish provinces through a network of 2,121 food retail stores under the Migros, Migros Jet, 5M and Macrocenter banners as well as 44 Ramstores in North Macedonia and Kazakhstan.  

The new issuance represents the fourth time the company is tapping into debt capital markets in Turkey and builds on the success of previous bonds in 2018 and early 2019, which were also backed by the EBRD.

The new Turkish lira-denominated bond will be listed on Borsa Istanbul and its proceeds will reduce the company’s foreign currency exposure.

The EBRD’s support of Migros bonds promotes the development and deepening of debt capital markets as an alternative source of financing, a priority for the EBRD in Turkey.

In December 2018, the EBRD also provided a TRY equivalent of €60 million capital expenditure facility to Migros.

The EBRD is a leading institutional investor in Turkey and has invested almost €12 billion in 302 projects in the country since 2009. The overwhelming majority of EBRD investments are in the private sector.

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