Erdemir's first Eurobond issuance of 750 million dollars
Türkiye's leading steel company, Erdemir, successfully executed its first Eurobond issuance, garnering demand from over 130 international institutional funds—more than four times the planned issue size. The USD 750 million issuance, which will be traded in Europe and the US, saw demand exceed USD 2 billion. This figure represents the largest demand for a first issuance in Türkiye's private sector in 2024.
Süleyman Savaş Erdem, General Manager of OYAK and Chairman of the Board of Directors of Ereğli Demir ve Çelik Fabrikaları T.A.Ş., said, “Erdemir's Eurobond issuance was the highest amount among Turkish companies making their first issuances in 2024. This indicates the confidence international investors have in Türkiye and our organization.”
Türkiye's industrial giant, Erdemir, a member of the OYAK Group Companies, completed the Eurobond issuance with remarkable success. Following investor negotiations in London, the planned issuance size of 500 million dollars was exceeded fourfold, with total demand surpassing 2 billion dollars for the 750 million dollar issuance.
The five-year bond, which will be traded in the European and US markets, was set with a yield of 8.625 percent and a coupon interest rate of 8.375 percent. After completing the necessary procedures, the bond will be traded on the Irish stock exchange Euronext.
A sign of confidence in Türkiye
Süleyman Savaş Erdem, General Manager of OYAK and Chairman of the Board of Directors of Ereğli Demir ve Çelik Fabrikaları T.A.Ş., emphasized that the demand exceeding four times the planned issuance size of 500 million dollars showcases the recognition of Erdemir's successful performance by investors. Erdem said, “The Eurobond issuance is an indication of the confidence foreign institutional investors have in Türkiye and our organization. Our bond issuance was the highest among Turkish companies making their first issuance in 2024. Not only did we achieve a historic success for our company, but we also executed one of the highest transactions among the Eurobond issuances of Turkish companies. Moreover, this issuance is the first steel company issuance in the Central and Eastern Europe, Middle East, and Africa (CEEMEA) region since 2021.”
Opportunity to diversify our funding structure in the long term
Erdem highlighted the significance of the steps taken in the field of sustainability, a priority strategic topic for OYAK Group Companies, being appreciated by international investors.
Erdem remarked, “We received more than four times the planned issuance amount for our USD 750 million bond issuance at a coupon interest rate of 8.375 percent, a highly successful rate in today's market conditions. This achievement has been a source of pride for all of us. We plan to use this resource to make our balance sheet healthier by extending the average maturity of our loan portfolio and to finance our investments. We will continue to provide added value to our country and all our stakeholders by maintaining our strong financial and operational performance. Our Eurobond issuance, which was in high demand, is the result of our successful financial strategy and the trust-based relationship we have established with our investors. We thank our international investors who believe in our country and the strong financial structure of our company.”
