CCI Funding Strategy and Risk Management

CCI Funding strategy is to ensure sufficient, cost-effective and sustainable long term funding around the following principles;

• Maintain the existence in both international and local bank debt markets as well as the international debt capital markets,
• Concentrate group borrowings at Coca-Cola İçecek A.Ş. level, to simplify consolidated liability profile
  • Intercompany loans via CCI to most of its subsidiaries when necessary
  • Subsidiaries with joint control or having local regulation or tax restrictions in their operating countries, work with local and international banks as well as multilateral institutions under CCI guarantee

For the latest maturity profile, please see the latest earnings release.

Eurobond Prospectus

CCI is mainly exposed to

• Foreing Exchange Risk

  Major part of total debt and almost 1/3 of COGS consist of hard currency

  • Continously monitoring the market to benefit any opportunity to diversify the loan portfolio currency structure
  • Almost all of the raw material FX portion in Turkey is hedged to be protected against FX movements
• Commodity Price Risk

  Primary raw materials are exposed to price changes due to volatility in the markets

  CCI manages its RM price risk through both financial hedges and price fixings with suppliers pursuing approved levels by the Board

• Interest Rate Risk

  There is no substantial interest rate risk since major part of total loan portfolio has fixed interest rate

• Credit Risk

  CCI allocates its sources based on approved counterparty limits which are regularly being reviewed

• Liquidity Risk

  CCI has around USD1,5bn and TRY 0,5bn uncommitted available line (being the usual practice in Turkey) at both local and international banks

  CCI keeps USD200-250mn average excess cash to maintain an acceptable liquidity level for the business