EBRD loan to finance green upgrades of Türk Telekom networks

By Olga Rosca
@olgarosca

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  • Capital expenditure loan of US$ 100 million for Turkey’s leading telecommunications provider
  • Investment programme aims to improve sustainability

The European Bank for Reconstruction and Development (EBRD) is extending a US$ 100 million loan to Türk Telekom to ensure that network upgrades aimed at further improving the sustainability of one of the leading telecommunications providers in Turkey continue despite the Covid-19 pandemic.

The company, which offers telecommunications and internet services for around 48 million subscribers, is planning an ambitious investment programme. It includes the modernisation of fixed broadband infrastructure, using energy-efficient technology and equipment.

Arvid Tuerkner, EBRD Managing Director for Turkey, said: “There is a consensus among responsible investors that rebuilding economies after the coronavirus pandemic will not be enough. We will have to build back better – to create a more sustainable corporate sector. I am pleased that this EBRD financing will ensure that Türk Telekom’s modernisation aimed at greater sustainability will continue to benefit millions of people in the country, and the environment too.”

Dirk Werner, EBRD Director for Information and Communication Technologies, added: “We are very pleased to continue to strengthen our longstanding relationship with Türk Telekom through this new facility. As a leading operator and driving force behind the innovation and growth of Turkey’s telecommunications sector, Türk Telekom is instrumental in implementing energy efficient investments for the country. We look forward to supporting the company in further achieving its strategic goals.”

Kaan Aktan, Türk Telekom Chief Financial Officer, commented: “As part of our sustainability policy, we are implementing projects and initiatives, including those in the area of energy efficiency. We plan to fully integrate the universal principles of sustainability into our business model, strategies and corporate decision-making. We are glad to have the EBRD as a strategic partner as we continue to accomplish our objectives, focused on sustainability. This new facility reinforces our strong and longstanding cooperation.”

The EBRD has previously financed Türk Telekom’s investments in fixed broadband infrastructure in rural Turkey, the roll-out of 4G technology and the construction of a new submarine cable system connecting western Europe to south-east Asia through Turkey and the Middle East.

The new financing is part of the EBRD’s efforts to help countries in its regions to combat the economic impact of the coronavirus and support the recovery. The Bank stands ready to provide support worth €21 billion over the period 2020-21.

The EBRD is a major investor in Turkey. Since 2009 it has invested €12.4 billion through 311 projects in various sectors of the country’s economy, with almost all investment in the private sector. The EBRD’s €7 billion portfolio in Turkey is the largest among the 38 economies where the Bank invests.

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