Fundraising

Turkey keeps foot on accelerator

The EBRD-assisted financing of a new €1bn hospital is further evidence of the country’s ambitious infrastructure programme.

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A €1.12 billion financing package has been unveiled for Turkey’s latest mega-hospital public-private partnership (PPP).

The Etlik hospital campus, near the capital city of Ankara, is to be designed, built, equipped and managed by private developer Ankara Etlik Health Investment, which was established by Italian developer Astaldi and Turkish construction firm Turkerler.

The project is the latest to be financed under the Turkish government’s €12 billion programme to build or expand around 60 hospitals across the country in partnership with the private sector.

The latest announcement follows financial close being achieved for three other large recent hospital PPP projects. Last December, the Adana Integrated Healthcare Campus in Adana closed with €550 million of financing.

Then, in March this year, the Bilkent Integrated Healthcare Campus, in Ankara, closed with €1.2 billion of financing, and, earlier this month, financial close was also reached on the Yozgat Education and Research Hospital in Yozgat.

The European Bank for Reconstruction and Development (EBRD) is committing a €125 million loan to the Etlik project which also sees financing coming from: Deutsche Bank; Credit Agricole Corporate and Investment Bank; Unicredit; Banca IMI; the International Finance Corporation; The Black Sea Trade and Development Bank; Germany’s DEG; and local banks Isbank, Turkiye Sinai Kalkinma Bankasi and Akbank.

The Etlik campus will span 11 hospital buildings with 3,566 beds and aims to deliver better hospital facilities for about 12 million people in Ankara and central Anatolia. The buildings are being leased to Turkey’s Ministry of Health under a 27.5-year concession. The private developer will be facilities manager while the Ministry will retain responsibility for medical services.

Turkey’s infrastructure push is not restricted to hospitals. Yesterday, Infrastructure Investor reported that Deutsche Bank had teamed with eight Turkish lenders to offer a $4.96 billion facility for the financing of Phase II B of the Gebze-Orhangazi-Izmir motorway and the refinancing of Phases I and II A.

The project, worth $7.2 billion overall, is the largest project ever financed under Turkey’s build-operate-transfer law.