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High Appetite for Turkish Beverage Giant from Foreign Investors

Press Release Sep 16, 2017

High Appetite for Turkish Beverage Giant from Foreign Investors

CCI’s recent USD 500 million Eurobond issue with a 7-year maturity attracted high demand from foreign investors. Commenting on the issue, with a demand of over USD 4.5 billion from more than 300 investors, CCI CEO Burak Başarır said: "Our Eurobond issue which is nine times oversubscribed, has confirmed the confidence of foreign investors in our country".

Coca-Cola İçecek (CCI), whose major shareholder is the Anadolu Group, operating in Turkey, the Middle East, Central Asia and Pakistan with 25 plants and more than 10,000 employees, successfully priced a Eurobond issue of USD 500 million with a seven year maturity and fixed coupon rate of 4.215%. More than 300 investors, primarily from the United States and the United Kingdom, but also from countries like Switzerland and Germany, showed a high demand for the issue, resulting in approximately nine times oversubscription. The oversubscription was clear evidence of foreign investors’ confidence in Turkey. The issue was managed by a group of banks that consisted of BNP Paribas, Citigroup Global Markets Limited, HSBC Bank PLC, J.P. Morgan Securities PLC and MUFG Securities EMEA PLC.

CCI CEO Burak Başarır stated that the cash generated will be used for investments in Turkey and international operations as well as for refinancing certain existing indebtedness. He said: "We realized a landmark Eurobond issuance, with one of the lowest interest rates among Turkish corporates in recent years. The issuance has been oversubscribed by nine times, with more than 300 investors. The level of interest shown in our company is clear evidence that foreign investors have full confidence in Turkey. Likewise, we continue our investments at full speed with absolute confidence in our country. Our new Isparta plant inaugurated last month is just one example".

These materials are not an offer of securities for sale in the United States. The securities to which these materials relate have not been registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an exemption from registration or in a transaction not subject to the registration requirements under the Securities Act. There will be no public offering of the securities in the United States.

This document is being distributed to and is only directed at (i) persons who are outside the United Kingdom, (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), (iii) high net worth companies, and (iv) other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i) to (iv) above together being referred to as “relevant persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

The securities shall not be sold in Turkey in any circumstances which would constitute a sale or a public offering within the meaning of the Capital Markets Law without the approval of the Capital Markets Board of Turkey (the CMB). No transaction that may be deemed as a sale of the securities in Turkey by way of private placement or a public offering may be engaged in without the approval of the CMB. Additionally, no prospectus and other offering material related to the offering may be utilised in connection with any general offering to the public within Turkey for the purpose of the offer or sale of the securities without the prior approval of the CMB.

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