Narrative
Full Description
Project narrative
On February 15, 2017, ICBC contributed to a EUR 288 million syndicated loan agreement with ELZ Saglik Yatirim A.S. — a special purpose vehicle (SPV) and a joint venture that is owned by Ronesans Saglik Yatirimlari and Ronesans Holding (44% equity stake), Meridiam Infrastructure Fund (36% stake) and Sila Group, TTT, Sam Yapi (20% equity stake) — for the Elazığ City Hospital Project. The EUR 360 million project was implemented on a public-private partnership (PPP) basis and financed according to an 80:20 debt-to-equity ratio. ELZ Finance S.A. issued EUR 288 million of privately placed, euro-denominated senior secured bonds (one EUR 83 million bond with an 18-year tranche and another EUR 205 million bond with a 20-year tranche) and on-lent the proceeds to its sister company ELZ Saglik Yatirim A.S. The bond investors included the FMO, IFC, Industrial and Commercial Bank of China (ICBC), Intesa Sanpaolo, MUFG, Siemens Financial Services, and Proparco. The shareholders of ELZ Saglik Yatirim A.S. also made a EUR 72 million equity investment in the project. MIGA provided a political risk guarantee for the bonds that were issued and the project’s equity investment. The purpose of the Elazığ City Hospital Project was to build, finance and maintain an integrated health campus with 1,038 beds in Elazığ for an operation period of 25 years following a construction period of 3 years. ELZ Saglik Yatirim A.S. was awarded a 28-year concession for this purpose by the Turkish Ministry of Health. The project involved the construction of a 355,000 square meter facility that can serve up to 20,000 patients and house 1,038 new beds. It officially commenced on August 26, 2014. The project was successfully completed and the hospital was put into service on July 31, 2018. The Elazığ City Hospital is reportedly one of the largest hospitals with earthquake isolation in the world.
Staff comments
1. The Turkish project title is Elazığ Entegre Sağlık Hastanesi or Elazığ Entegre Sağlık Kampüsü Projesi. 2. Ronesans is coded as the implementing agency because several sources reference it as the primary contractor. 3. The precise value of ICBC’s contribution to the loan syndicate is unknown. For the time being, AidData assumes equal contributions ($41,142,857) across the 7 known members of the loan syndicate. 4. The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank Group. MIGA provides political risk insurance (guarantees) for projects in a broad range of sectors in developing member countries, covering all regions of the world.