DIB loans USD 150 mn to Turkcell for digital infrastructure: Dubai Islamic Bank has signed a USD 150 mn shariah-compliant Murabaha facility with Turkish telecoms and technology services provider Turkcell, according to a statement. The five-year facility will support investments in data centers, cloud services, and renewable energy, and help expand the telco’s digital infrastructure.

Not the first UAE backer: This comes one week after Emirates NBD extended a EUR 100 mn Murabaha facility to Turkcell’s data centers subsidiary TDC Veri Hizmetleri to support growth in environment-friendly data centers, according to a statement released last week. The facility will also have a five-year tenor and is set to support eco-friendly data centers and cloud services infrastructure.

DATA POINT- The Turkish data centers market is set to grow at a 5% annual rate through 2032, to hit a USD 5 bn valuation, up from USD 3 bn in 2023, AGBI reported, citing data from Arizton Advisory & Intelligence.

About Turkcell: Founded in 1994, the NYSE-listed Turkish telecom company provides a range of telecom and tech services. Turkcell provides hosting and data center services to local and international players, and currently operates eight data centers with 41.5 MW capacity across Turkey, including the Gebze data center — dubbed as one of Turkey’s largest.

IN OTHER DEBT UPDATES-

Aramco issued a fresh USD-denominated bond yesterday under its global medium-term note program, raising USD 5 bn over three tranches, Reuters reported, citing fixed income news service IFR. Proceeds will go to general corporate purposes, and the Reg-S compliant paper will be listed on the London Stock Exchange, according to a Tadawul disclosure.

The breakdown: The oil giant priced the USD 1.5 bn five-year tranche at 80 bps over US treasuries, compared to an initial price point of 115 bps. The 10-year notes raised USD 1.25 bn and were priced at 95 bps, down from 130 bps. Finally, the longest-dated 30-year tranche — valued at USD 2.25 b — was priced at 155 bps over US treasuries, compared to the initial 185 bps.

REFRESHER- The move, which is subject to market conditions and regulatory approvals, comes nearly a year after Aramco last tapped the debt market with a USD 6 bn international bond sale.

Why now? Aramco’s return to the debt market comes as the oil giant navigates a dip in earnings, posting a 4.6% y-o-y drop in its 1Q net income. Aramco was also said to be weighing asset sales to unlock capital amid plans for international expansion.

ADVISORS- Aramco tapped our friends at HSBC, alongside Citi, Goldman Sachs, and JP Morgan as active joint bookrunners. Meanwhile, Abu Dhabi Commercial Bank, Bank of China, BofA Securities, Emirates NBD Capital, First Abu Dhabi Bank, Mizuho, MUFG, NATIXIS, Riyad Capital, SMBC, SNB Capital and Standard Chartered Bank served as passive joint bookrunners.

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