The $750 million Eurobond, which will be traded in European and U.S. markets, saw total demand surpass $2 billion. This figure marks the largest demand for an initial private sector issuance in Türkiye in 2024.
OYAK General Manager and Chairman of the Board of Directors of Ereğli Iron and Steel Works Co. (Erdemir), Süleyman Savaş Erdem, stated, “Erdemir's Eurobond issuance has become the largest initial issuance by a Türkish company in 2024. This underscores the confidence international investors have in Türkiye and our institution.”
Erdemir, an industrial giant within the OYAK Group, has successfully completed its first Eurobond issuance, a historic milestone for the company. Following investor meetings held in London, foreign issuance demand reached four times the planned $500 million target, totaling over $2 billion in requests for the $750 million issuance.
The Eurobond, which will be traded on European and U.S. markets, comes with a five-year maturity, offering a yield of 8.625% and a coupon rate of 8.375%. After completing the necessary procedures, the bond will be listed on Ireland's Euronext stock exchange.
A sign of confidence in Türkiye
OYAK CEO and Ereğli Iron and Steel Works Inc. Board Chairman Süleyman Savaş Erdem said the incoming demand exceeded four times the planned $500 million issuance, adding that Erdemir's successful performance resonated with investors. Erdem said, “The Eurobond issuance we realized is a testament to the confidence that foreign institutional investors have in Turkey and our institution. Our bond issuance was the highest-value issuance among Turkish companies making their first issuance in 2024. While we achieved a historic success for our company, we also carried out one of the highest-value transactions within the Eurobond issuances of Turkish companies. Moreover, this issuance holds the distinction of being the first steel company issuance in the Central and Eastern Europe, Middle East and Africa (CEEMEA) region since 2021.
"Opportunity for long-term diversification of financial resources"
Erdem highlighted the significance of steps taken in sustainability, a strategic priority for OYAK Group Companies, receiving international investor appreciation.
He continued, “Our $750 million bond issuance, with a 8.375% coupon rate, attracted demand exceeding four times the planned issuance size, at a highly successful rate given current market conditions. This achievement is a source of pride for all of us. We plan to use these funds to extend the average maturity of our credit portfolio and to finance our investments, thereby enhancing the health of our balance sheet. We will continue to deliver added value to our country and stakeholders by maintaining strong financial and operational performance. The high demand for our Eurobond issuance is a result of our successful financial strategy and trusted relationship with our investors. We extend our gratitude to the international investors who believe in our country and the strong financial structure of our company.”
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