Çalık Enerji’s TL bond issuance oversubscribed
Çalık Enerji, a Çalık Holding-Mitsubishi Corporation partnership, increased bond issuance amount initially set as TRY 100 million to TRY 150 million due to strong demand. The proceeds from the issuance, placed by ÜNLÜ & Co, will be used for the financing of the company's energy investments.
The TRY 150 million corporate bond issuance by Çalık Enerji San. ve Tic. A.Ş. (“Çalık Enerji”), a globally acknowledged energy contracting company undertaken by ÜNLÜ & Co, Turkey's leading investment banking services and asset management group is successfully completed. A significant number of qualified investors were interested in the corporate bond issuance on 3 February.
The TRY 150 million corporate bond with a maturity of 2 years was the second issuance by Çalık Enerji. The company had redeemed the first bond issuance of the same amount on January 27, 2017. The annual compounded return based on the calculation of the first coupon of the issuance is 16.1424%. The proceeds of the issuance will be used for the renewable energy investments by Çalık Enerji.
Çalık Enerji has more than 5,500 employees and is a leading global company in turnkey installation of power and infrastructure plants, power and gas distribution and electric power generation. Following the first bond issuance, Mitsubishi Corporation became a shareholder in the company through a strategic investment in May 2015. In 2016, the company's JCR Credit Rating was increased from BBB+ to A-.
'A reflection of confidence in a strong balance sheet'
Salih Tuncer Mutlucan, CFO and Board Member for Çalık Enerji made a statement on the corporate bond issuance and underlining that they received strong demand beyond their expectations: "The level of interest in our company’s bond issuance, which operates globally in Power Generation Power and Gas Distribution, is a reflection of the confidence in the strong shareholding and balance sheet structure. Çalık Enerji will continue to create added value for our country through its domestic and international operations. Our company will use the proceeds from the corporate bond issuance in the financing of renewable energy investments."
'The market will have more depth through new issuances'
Erdem Selim, Managing Director for Debt Capital Markets and Advisory Department at ÜNLÜ & Co, which completed the second corporate bond issuance for Çalık Enerji, shared the following information: "We are glad to be involved in one of the first private sector corporate bond issuances in 2017 and to continue our successful collaboration with Çalık Enerji. Considering the high amount and a very broad list of investors, this issuance has been a key achievement in terms of the development of debt capital markets. Strong demand in the issuance is also an indicator of how important the company's relations with debt capital market investors established during the first issuance are, coupled with a correct risk and return profile. At ÜNLÜ & Co, we plan to keep contributing to development of the corporate bond market through new issuances in 2017 and maintain our leading position among underwriters. "