Coca-Cola İçecek Anonim Şirketi (Coca-Cola İçecek) has successfully issued US$500 million 7-year 144A/RegS bonds at a fixed coupon rate of 4.50%, raising attention from the international investors at challenging times to raise funds in emerging markets. Coca-Cola İçecek had received an investment grade rating from S&P in late 2021 on top of its already existing investment grade rating from Fitch.

Marked as Turkey’s largest sustainability-linked bond, the transaction is also regarded as the first sustainability-linked bond of the beverage industry in the EMEA region. The company, under the bond conditions, will have a key performance indicator tied to water usage reduction, and has committed to reporting and externally verifying its performance on an annual basis.

The bonds will mature in 2029 and are admitted to listing on the Euronext Dublin. The proceeds will refinance part of US$500m outstanding bond due in September 2024, the company’s debt, support capex investments and working capital needs.

Paksoy is pleased to announce that the capital markets team of Paksoy led by partner Ömer Çollak, together with senior associate Merve Kurdak and associate Bülent Öztürk, acted for the issuer Coca-Cola İçecek in this transaction.