Record Appetite for Turk Telekom’s Inaugural Refinancing Bond Offering Reflecting Record International Investors Unprecedented Confidence in Turkey and Turkish Corporates

June 20, 2014

ISTANBUL, June 20, 2014 /PRNewswire/ –

Turk Telekom’s US$ 1 Billion bond offering to refinance short term debt was about 8
times oversubscribed by international investors. This transaction proved to be a landmark
issuance as the largest and first ever dual tranche corporate bond offering across two
maturities issued out of Turkey.

http://photos.prnewswire.com/prnh/20140620/693508 )

Turk Telekom completed its book-building for its bond issuance, after a roadshow
composed of senior delegation from the TT Group executive team, visiting over key
institutional accounts in London, Los Angeles, Boston and New York. On the final day of
the roadshow, on the back of overwhelmingly positive investor appetite and taking
advantage of the low interest rate environment, Turk Telekom launched its debut

The US$ 1 billion inaugural issuance is carried out across two tranches, of US$ 500 M
each, with 5 and 10 year maturities. On the back of Turk Telekom’s strong credit metrics,
both tranches were successfully priced at 30 bps spread to Turkish sovereign issues of
similar tenors. The 5-year tranche is priced at 99.6% with a 3.750% coupon. The 10-year
tranche is priced at 99.165% with a 4.875% coupon.

The final orderbook of over US$ 5.5 billion was composed of a very high quality group
of over 400 accounts of high grade and emerging markets investors across 40 countries. The
final amount of US$ 1 billion bond was distributed fully to international investors from
US (48%), Europe (25%), UK (20%), Middle East and Asia (7%).

This transaction enables Turk Telekom to refinance short-term portions of its debt
with lower cost and longer tenor from new sources, thus diversifying and extending its
funding base with more favorable terms. Turk Telekom’s successful inaugural bond issue,
which is an important indicator of international investors’ confidence in Turkey and
Turkish companies, also sets a new benchmark for other Turkish Corporates.

        For further information and communication:
        Gurkan Kagan Ozturk

        Tel: +90-(0)533-135-08-46

        AslI Eskibatman
        Tel: +90-(0)5300-957-47-43



SOURCE Turk Telekom

Source: PR Newswire

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