Global Ports Holding carried out one of the low-interest and long-term borrowing transactions

The bond issuance, in which several of the world’s leading insurance and asset management institutions participated, was one of the lowest-interest and long-term debt transactions of a company born in Turkey in recent times. A large part of the obtained funds was used to pay off the secured loan with Sixth Street approximately 3 years before maturity. The remaining part will be used to finance investments in the expansion and development of the port portfolio, especially in the Caribbean region.

Mehmet Kutman, Chairman and CEO of Global Ports Holding, said, “The investment grade credit rating given by two rating agencies strongly confirms the accuracy of Global Ports Holding’s business model and strategy at the international level. “We will use the resources we obtained through the bond issuance to continue to grow our business,” he said.

Global Ports Holding (GPH), the world’s largest cruise port operator and a subsidiary of Global Investment Holding, has successfully issued a new bond with its strong financial structure and sustainable growth. Global Ports Holding’s new bond issuance of 330 million dollars, with a fixed coupon rate of 7.87 percent annually, was completed through private placement to a limited number of investors consisting of international insurance and asset management organizations.

Two international rating agencies gave investment grade credit rating to this issue of Global Ports Holding amounting to USD 330 million. The total maturity of the financing provided will be 17 years, and the weighted average maturity will be approximately 13 years. This bond issuance, in which the world’s leading insurance and asset management institutions participated, was one of the lowest-interest and long-term debt transactions of a company born in Turkey in recent times.

Will expand its port portfolio

The majority of the funds obtained from the issuance were used to pay off the secured loan borrowing with Sixth Street before its maturity by repaying it in full, including interest and early payment fees. The remaining part will be used to finance Global Ports Holding’s investments in the expansion and development of its port portfolio, especially in the Caribbean region.

With this transaction, Global Ports Holding not only provided significant savings in interest expenses and a long-term funding structure, but also secured the financing of growth projects in the near future.

‘It confirms the excellence of our business model and strategy’

Stating that he is satisfied with this financing provided by international institutional investors, Global Ports Holding Chairman and CEO Mehmet Kutman said, “The investment grade credit rating given by the two rating agencies for this transaction shows how correct the business model and strategy of Global Ports Holding is.” strongly confirms. We will use some of the funds we receive from the bond issue to continue growing our business. This financing transaction significantly reduces our interest costs, significantly extends the maturity profile of our debt and makes a significant contribution to the financing of our planned investment in new port expansion projects. “We will use this resource to finance investments in the expansion and development of our port portfolio in the Caribbean region,” he said.

‘It will help us increase our profitability and finance our new investments’

Global Ports Holding Chief Financial Officer Jan Fomferra said that the fact that the bond issue received an investment grade credit rating is a proof of the strength of the business model and added: “This rating received from leading international rating agencies will also support the possibilities of financing our growth opportunities in different countries with very favorable conditions. On the other hand, this “The significant decrease we will achieve in our interest expenses with the transaction will also contribute to our profitability, which has increased significantly compared to previous periods, with the total number of passengers approaching 15 million annually.”