Şişecam’s 7-Year 500 Million Dollar Eurobond Issuance

The latest issuance, executed by its wholly owned UK subsidiary, Şişecam UK PLC, adds to Şişecam’s series of successful debt offerings driven by strong investor demand in international markets. The coupon rate for the issuance was set at 8.3750%.

Citigroup Global Markets Limited, BNP Paribas, J.P. Morgan Securities plc, and Emirates NBD Bank PJSC were mandated for this issuance. Credit ratings were affirmed at Şişecam’s current levels, rated “B” by Fitch and “B2” by Moody’s.

Proceeds from the Eurobond will be used to refinance the remaining 372 million dollar-liability from 2026 Notes, as well as selected short-term financial obligations. This issuance enables Şişecam to diversify its funding sources used in liquidity management and extend the maturity profile its short-term financial liabilities, thereby shifting to a long term debt profile.

In his assessment regarding the issuance, Şişecam’s CEO Can Yücel stated that the strong interest from international investors underscores confidence in Şişecam’s robust global positioning and long-term strategy. Yücel said, “As Şişecam, we are determined to and consistently maintain a strong, disciplined and reliable presence in international capital markets. This issuance is a concrete reflection of global investors’ confidence not only in our current financial performance, but also in our long-term strategic journey and sustainable growth vision. By extending our debt maturity, we enhance our resilience against various medium-to long-term risks, thereby increasing our financial and operational flexibility and significantly supporting our investment plans focused on value creation.”

Last year, Şişecam issued a total of 1.5 billion dollars in Eurobonds, consisting of 675 million dollars with 5-year and 825 million dollars with 8-year maturities, attracting nearly 5 billion dollars in demand, marking the largest corporate bond issue in the history of the Republic of Türkiye. This new issuance reaffirms Şişecam’s credible standing in international capital markets.

Key Details of Şişecam’s Eurobond Issuance:

• The 7-year fixed-rate bonds have a nominal value of 500 million dollars with a coupon rate set at 8.3750%.
• Total demand from international funding and financial institutions was 1.7 billion dollars.
• Investor meetings for the Eurobond issuance were held in London.

Meetings involved discussions with more than 60 investors.