Adm Electricity Distribution, one of Aydem Energy’s companies operating in the electricity distribution sector, has successfully completed a USD 500 million Eurobond issuance to increase its investments in the cities of Aydın, Denizli and Muğla. In the five-year bond issuance, which carries a coupon rate of 9.5%, demand of approximately USD 1.2 billion was received from around 100 international investors, with long-term investors accounting for approximately 65% of total demand.
Adm Electricity Distribution has completed a Eurobond issuance in the amount of USD 500 million in the international capital markets. The issuance, which was carried out by Adm Electricity Distribution for the first time, has a five-year maturity and a coupon rate of 9.5%. The bonds will be listed on Euronext Dublin in Ireland, with Morgan Stanley and Citigroup acting as the joint lead managers for the transaction. Demand of approximately USD 1.2 billion was received from around 100 international investors, with long-term investors accounting for approximately 65% of total participation. As a result, the transaction was oversubscribed by approximately 2.4 times, reflecting a strong and high-quality investor base. Adm Electricity Distribution will primarily use the proceeds of the issuance to finance infrastructure investment expenditures (CAPEX) in the region.
“We Will Invest More Than USD 2 Billion in 5 Years”
Serdar Marangoz, Chief Executive Officer of Aydem Energy, has stated the following regarding the Eurobond issuance: “Following the successful completion of the USD 500 million Eurobond issuance carried out in 2024 for our Gdz Electricity Distribution company, we are pleased to have also successfully completed this transaction in the international capital markets for our Adm Electricity Distribution company. The strong and high-quality demand from global investors has been a significant indicator of the confidence in the financial strength of our distribution business line and our long-term investment approach. We will use the funds raised to support our investment expenditures and to further strengthen our balance sheet structure. Over the next 5 years, with our distribution group companies, we plan to invest more than USD 2 billion in electricity distribution network infrastructure across the cities of Aydın, Denizli, Muğla, Manisa and İzmir. We have increased our regional maintenance budget by approximately 3 times. In addition, we have allocated approximately USD 500 million over the next 5 years for improvement and rehabilitation activities in these five cities. We will continue to make long-term and sustainable contributions to Türkiye’s energy infrastructure.”