DLA and A&O lap up $500m Coca-Cola Icecek bond offering

DLA Piper has advised Coca-Cola Icecek, the Turkey-based international Coca-Cola bottler, in its inaugural offering of five-year bonds worth $500m.

Coca-Cola Icecek is one of the six largest bottlers in the global Coca-Cola system, and one of about 250 bottlers owned by the corporation globally. In addition to Coca-Cola itself, the group bottles other drinks including water and tea, and has operations in 10 countries including Azerbaijan, Iraq, Kazakhstan, Pakistan and Turkey. 

“We faced a number of challenges as there have been some difficult market conditions throughout the summer,” said capital markets partner George Barboutis, who co-led the team for DLA Piper.

Political instability in Turkey and the wider region “definitely affected the way the international market sees offerings,” he continued. “Whenever you finish working on a deal like that you always feel proud.” 

DLA Piper’s team advising the issuer was led by Barboutis in London and corporate partner Ekin Gokkilic from Turkish associated firm Yüksel Karkın Küçük (YKK). The pair were assisted by capital markets counsel Sarah Kight, corporate senior associate Alexander Kolmakov and YKK associates Ceren Berispek and Hazal Korkmaz. 

Allen & Overy capital markets partner Sachin Bave advised Barclays, Citigroup, HSBC and JP Morgan on the deal, alongside partner Omer Collak from Turkish firm Paksoy

The offering was one of the few Turkish corporate bonds to receive two investment grade ratings, and the second which DLA Piper has worked on in the region. In November 2012 the firm advised Anadolu Efes, the Turkish beer and soft drinks group, in its inaugural investment grade note offering of $500m 3.375 per cent notes due in 2022.

For more on Turkey, see this week’s special report, Rage of reason.