ICBC contributes EUR 90.75 million to an EUR 494.5 million syndicated loan for the Bilkent Laboratory PPP Project

On December 28, 2017, CCN Laboratuvar Hizmetleri ve Yonetim A.S. (CCN Medical Research Center Turkey) — a special purpose vehicle and wholly owned subsidiary of CCN Yatirim Holding A.S., Turkey — signed an EUR 711 million ($856 million) syndicated debt financing package with a group of 12 lenders for the Bilkent Laboratory PPP Project. 10 of these lenders contributed EUR 529.5 million: Black Sea Trade and Development Bank (EUR 65 million), EBRD (EUR 75 million), Siemens Bank (EUR 14.5 million), UniCredit Intesa Sanpaolo ICD (EUR 35 million), Islamic Development Bank (EUR 175 million), Oesterreichische Entwicklungsbank AG (EUR 30 million), ECO Trade and Development Bank (EUR 15 million), Islamic Corporation for the Development of the Private Sector (EUR 25 million), Finansbank A.Ş, Ankara Branch (EUR 75 million), OPEC Fund for International Development (EUR 20 million). Vakif Katilim Bankasi (VKB) and the Industrial and Commercial Bank of China (ICBC) contributed an estimated EUR 90.75 million each. The loans that were issued carried 15-year maturities (corresponding to the length of the concession term) and an interest rate of EURIBOR plus a 3.5% margin. The other borrowing terms of the loans that were issued are unknown. The purpose of this Public Private Partnership (PPP) project was to design, finance, construct, operate and transfer a medical research center — with 4 different biosafety level laboratories — in the district of Bilkent and the province of Ankara. The concession holder is responsible for supplying and maintaining the research laboratories. Research services are to be conducted by Turkey’s Ministry of Health. DiA Construction and Siemens Healthineers were responsible for project implementation. This project reached implementation. However, its precise commencement date is unknown. The medical research center began operations in February 2019.

Additional details

1. ICBC and VKB’s respective contributions to the loan syndicate are unknown. However, it is known that they collectively contributed EUR 181.5 million. For the time being, AidData assumes equal contributions (EUR 90.75 million) from these two lenders. 2. Advisers to the sponsor are: UniCredit - financial Clifford Chance – legal Yegin Ciftci law firm – local legal Mott MacDonald – technical JLT – insurance The lenders were advised by: White & Case – legal Ergün law firm – local legal. 3. The borrowing institution is also known as CCN Laboratuar Hizmetleri ve Yoneticm Anonim Sirketi, Turkey. 4. CCN Yatirim Holding A.S. established to operate in construction, real estate, tourism and education sectors in addition to investment and operation of Healthcare PPP Projects.  5. This PPP project is being financed according to a 70:30 debt-to-equity structure. 6. AidData has estimated the all-in interest rate by adding 3.5% to average 6-month LIBOR in December 2017 (-0.271%). 7. This project is also known as the Ankara City Hospital Laboratory-Bilkent Project.

Number of official sources

5

Number of total sources

13