Borrower profile: Çalik builds funding for rapid growth
Çalik Holding is one of the Turkey’s largest conglomerates, with total assets of $2.4 billion. It has interests in textiles, construction, energy, telecommunications, financial services and trade. Chloe Hayward talks to Çalik’s management about the company’s debut bond issue and the impressive growth path that lies ahead.
Chairman: Ahmet Çalik
Debut bond: completed February 26 for $200 million
Head subsidiaries for each sector: Gap Guneydogu Tekstil (textiles), Calik Enerji (energy), Gap Insaat (construction), CalikBank (finance), Gap Pazarlama (logistics)
Recent acquisitions: HSV Kayseri Gaz, Banka Kombetare Tregtare (BKT)
It’s a hectic time for Turkish conglomerate Çalik Holding. The company, which was created in 1997 to coordinate several operating businesses across five sectors, is entering a period of rapid growth. It is also a lead partner in the Samsun-Ceyan pipeline project and has an impressive stream of acquisitions lined up.
To help fund its strategy, Çalik recently issued its debut bond, which will be a benchmark for Turkish corporates. The $200 million deal was launched in February with a maturity of five years. Both Çalik Holding and Merrill Lynch, the sole bank on the deal, describe the Eurobond as highly successful. High interest levels resulted in the book being 4.8 times oversubscribed and the deal being increased in size from $150 million. The maturity was also extended from three years once the level of interest was recognized.
"There was a lot of interest in this deal because there is very little Turkish corporate debt outstanding but also because Çalik has a good story to tell and they tell it well," says Alex von Sponeck, head of EEMEA debt capital markets at Merrill Lynch.