EBRD backs electricity firm’s first Turkish Lira-denominated bond
The European Bank for Reconstruction and Development (EBRD) stated on Dec. 6 that it is supporting the debut bond issuance by Zorlu Osmangazi, a subsidiary of Zorlu Energy and part of the Turkish conglomerate Zorlu Holding, in a new 70 million-Turkish Lira (15 million euro) capital markets transaction.
Zorlu Osmangazi is tapping capital markets to partly finance its four-year investment program, which includes replacement, upgrade and expansion of its network to meet growing demand in a key industrial region.
The total amount issued by the company, including the shorter-tenor 1.5-year tranche, was 175 million liras, read the statement.
The bonds will be listed on Borsa Istanbul, Turkey’s sole stock exchange, it added.
The transaction is part of the EBRD’s efforts to promote corporate bonds denominated in the lira as financial instruments for companies whose costs and revenues are in local currency. These help them avoid foreign exchange risk as they raise finance.