TWF completes early repayment of Türk Telekom loan

As part of this process, a total of $634 million in loan debt, including the principal installment due in 2025, was repaid early. The remaining balance was refinanced with a new five-year loan amounting to $750 million.

$150 Million Savings Through Early Repayment

For the first time, TWF 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.

Strategic Improvements in Loan Terms

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 TWF’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.

TWF CEO and Board Member Arda Ermut stated: "This transaction demonstrates both Türkiye Wealth Fund’s financial discipline and its long-term vision. With our strong balance sheet and strategic approach, we will continue to create value for Türkiye’s future, and we plan to make new investments in the mining sector and İzmir Port in 2025."

TWF is progressing with the goal of strengthening its financial structure and utilizing its resources more efficiently by enhancing its access to cost-effective financing. This refinancing transaction represents a significant step in its long-term strategic roadmap.

The Türk Telekom shares acquired by TWF for $1.65 billion have reached a peak market value of up to $3 billion, with their current valuation (for a 55% stake) standing at approximately $2.5 billion. Through this refinancing, TWF 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 TWF’s strategy of "enhancing the value of assets within the Fund."

TWF’s investment in Türkiye Sigorta, which it acquired and consolidated for $285 million, has also reached a record-high market valuation of approximately $3 billion. In recent years, TWF has accelerated its investments, completing major projects such as the establishment of Türkiye Katılım Sigorta and Türkiye Katılım Hayat Sigorta, as well as the Istanbul Financial Center. Meanwhile, it has also made significant share acquisitions in Türk Telekom, Turkcell, state-owned banks, and Kardemir.