CCI Funding Strategy and Risk Management
CCI Funding strategy is to ensure sufficient, cost-effective and sustainable long term funding around the following principles;
- Maintain the existence in both international and local bank debt markets as well as the international debt capital markets.
- Concentrate group borrowings at Coca-Cola İçecek A.Ş. level, to simplify consolidated liability profile.
- Intercompany loans via CCI to most of its subsidiaries when necessary.
- Subsidiaries with joint control or having local regulation or tax restrictions in their operating countries, work with local and international banks as well as multilateral institutions under CCI guarantee.
For the latest maturity profile, please see the latest earnings release.
Eurobond Prospectus
CCI is mainly exposed to
Major part of total debt and almost 1/3 of COGS consist of hard currency.
- Continously monitoring the market to benefit any opportunity to diversify the loan portfolio currency structure.
- Almost all of the raw material FX portion in Türkiye is hedged to be protected against FX movements.
Primary raw materials are exposed to price changes due to volatility in the markets.
CCI manages its RM price risk through both financial hedges and price fixings with suppliers pursuing approved levels by the Board.
There is no substantial interest rate risk since major part of total loan portfolio has fixed interest rate.
CCI allocates its sources based on approved counterparty limits which are regularly being reviewed.
CCI has around USD 1.5bn and TRY 0.5bn uncommitted available line (being the usual practice in Türkiye) at both local and international banks.
CCI keeps USD 200-250mn average excess cash to maintain an acceptable liquidity level for the business.
