A hospital in Turkey’s Kocaeli province has reached financial close after receiving a €375.7 million debt package from EBRD, OPIC and Export Development Canada.
OPIC was the lead financier, providing a loan of $200 million. EBRD arranged a €62.7 million syndicated loan, providing €20 million of its own money and €42.7 million syndicated to UniCredit, Industrial and Commercial Bank of China and Intesa Sanpaolo. EDC, Canada's export credit agency, contributed €55 million towards the development. The project has a total cost of €480.6 million, with the remainder to be financed by equity investments.
The same group of financiers also came together last month to finance a €769.6 million hospital in Izmir, Turkey’s third-largest city.
Both PPP projects will be developed by a consortium comprising local construction firms Turkerler Insaat and GAMA Holding in addition to GE Healthcare. Upon completion in 2019, the projects will be host to a total of about 3,200 beds and include physiotherapy and psychiatric services.
EBRD said the Turkish government’s hospital development programme is “a major pioneering initiative” and that the presence of three international financing institutions provided the confidence commercial banks needed to back the projects.
A partnership with the Turkish Ministry of Health has led the EBRD to finance five hospitals since it began investing in the country in 2009.