Turkcell, a Türkiye-based technology and communications firm, has secured $150m in Murabaha financing from Dubai Islamic Bank to strengthen Turkcell’s infrastructure investments and support its long-term growth objectives.
The strategic financing broadens Turkcell’s investor base and enhances its debt portfolio through a range of financing instruments.
Dubai Islamic Bank Group CEO Adnan Chilwan said: “We are delighted to have closed another deal from a GCC bank today via a $150m Murabaha financing facility.
“Türkiye is a key pillar of DIB’s cross border strategy, as a part of which DIB is delighted to have supported Türkiye’s leading technology and communications company in its growth plans.
“I am confident we will continue to build a strong partnership with more landmark transactions for Turkcell.”
Turkcell strengthens its financial foundation using both conventional and Islamic financing.
It leverages international and local bond issuances, development bank loans, export credit agency facilities, and sustainability-linked financing.
The diversified approach is crucial for Turkcell’s proactive balance sheet management.
It ensures optimal resource utilisation, enhances financial resilience, and supports the company’s long-term growth strategies.
Turkcell CEO Ali Taha Koç said: “Our goal and priority is to bring the most innovative technologies to our country and to provide the highest quality service to our customers.
“This transaction, which is based on interest-free Murabaha principles, will accelerate our infrastructure investments and serve as a significant resource to support our long-term growth objectives.
“It also demonstrates the strong investor appetite for Turkcell in the Gulf region.”
Turkcell’s agreement with Dubai Islamic Bank aligns with its commitment to diversifying its funding sources.
The signing was attended by Turkcell CEO Ali Taha Koç, Turkcell CFO Kamil Kalyon, Dubai Islamic Bank Group CEO Adnan Chilwan, and Chief of Investment Banking Ali Ahmad.
Based in Türkiye, Turkcell offers a portfolio of voice, data, and IPTV services over its mobile and fixed networks, along with digital consumer, enterprise, and techfin services.
The Group operates in Belarus, Northern Cyprus, and Türkiye, and has been dual-listed on the NYSE and BIST since July 2000.
Turkcell CEO Ali Taha Koç said: “Turkcell is in an investment phase, focusing on strategic areas such as data centres, cloud technologies, and renewable energy while continuing to strengthen its core telecommunication services, including mobile and fixed broadband.
“The strategic five-year bullet structure financing opens doors to new Gulf-based investors and reinforces our commitment to sustainable and diversified growth.
“The Murabaha structure, based on interest-free financing principles, not only highlights Turkcell’s global credibility but also serves as a gateway to future strategic partnerships across the Gulf region.”
In 2023, Dubai Islamic Bank agreed to acquire a 20% minority stake in Turkish financial services group T.O.M. Group of Companies.
T.O.M. Group includes digital retail bank T.O.M. Katılım Bankası, licensed e-money firm T.O.M. Pay Elektronik Para ve Ödeme Hizmetleri, and T.O.M. Finansman, and its affiliates.
