TVF completes early repayment of Türk Telekom loan

Türkiye Wealth Fund (TVF) has successfully completed the refinancing process of the loan it used in 2022 to acquire a 55 percent stake in Türk Telekom.

As part of this process, a total of $634 million in loan debt, including the principal installment due in 2025, was repaid early, the fund said in a statement.

The remaining balance was refinanced with a new five-year loan amounting to $750 million.

For the first time, TVF was able to make an early repayment of a loan, thanks to its strong cash flow and access to cost-effective financing sources.

The refinancing transaction resulted in total interest savings of over $150 million, it said.

With the new loan, the balloon payment structure in the previous agreement was eliminated, spreading the installments evenly over the loan term and aligning the repayment schedule with TVF’s cash flow.

Additionally, the restrictions on revenues derived from Türk Telekom under the previous loan were lifted, allowing these funds to be used freely.

The Türk Telekom shares acquired by TVF for $1.65 billion have reached a peak market value of up to $3 billion, with their current valuation (for a 55 percent stake) standing at approximately $2.5 billion.

Through this refinancing, TVF has not only secured significant cost savings on the loan but has also realized substantial value appreciation in Türk Telekom shares.

“This transaction serves as a concrete example of TVF’s strategy of enhancing the value of assets within the Fund,” it said.