China to give hefty loan to Turkcell

China to give hefty loan to Turkcell

ISTANBUL - Hürriyet Daily News
China to give hefty loan to Turkcell

Turkcell plans to use a $250 million loan on purchases from Huawei. REUTERS photo

Turkey’s largest mobile operator, Turkcell, has signed a deal with the China Development Bank for a $250 million loan.

During 2012 and 2013, Turkcell plans to invest the funds in products and services from Huawei, a Chinese multinational networking and telecommunications equipment and services company, the Istanbul Stock Exchange said Dec. 22.

The $250 million lump sum payment will consist of two loans with a five-year and seven-year maturity, respectively. The China Development Bank has not requested any sort of collateral for the loan, according to data gathered by Anatolia news agency.

Turkcell Treasury and Risk Management head Murat Doğan Erden said the loans provided both Turkey and Turkcell with inexpensive trade financing during a period of economic uncertainty in the world, especially in Europe.

“This unconditional loan from the Far East is an indicator of the trust in Turkey and Turkcell during the finals days of this year,” Erden said in a statement.