The Bilkent Integrated Healthcare Campus public-private partnership (PPP) in Turkey has reached financial close.
The project involves €1.2 billion of funding in total, including €890 million of long-term debt financing from Germany’s Siemens Financial Services, Italy’s UniCredit and Turkish banks. Equity financing is being provided by DIA Holding, a Dubai-based construction group.
With financing secured, work can progress on the construction, equipping and 25-year operation of the healthcare facility in Ankara, the capital of Turkey and its second-largest city.
Following a three-year construction phase, the campus will provide 3,804 in-patient beds and a 400-bed rehabilitation unit as well as a new office building on the site for Turkey’s Ministry of Health.
Bilkent is the the third major Turkish healthcare facility PPP to reach financial close in recent months. The Adana Integrated Healthcare Campus project (backed by Siemens as well as Paris-based fund manager Meridiam Infrastructure) and the Mersin Health Campus (backed by DIA Holding) both reached financial close in December 2014.
“The Turkish healthcare market is experiencing a tremendous transformation – a result of the government’s clear vision for ambitious healthcare reforms,” said Anthony Casciano, chief executive officer of healthcare finance at Siemens Financial Services, in a statement.
He added: “Last December’s Adana project proved to be a good example for successful PPP financings in Turkey, and now Ankara Bilkent is setting a benchmark for the levels of funding that PPP models can achieve.”
The statement described the Bilkent deal as “one of the world’s largest greenfield hospital projects”.