Development banks and commercial lenders in €494.5 million boost for medical innovation
An investment of €711 million in new high-tech health infrastructure will accelerate medical innovation in Turkey.
The EBRD together with other development banks and commercial lenders are providing a financial package of €494.5 for the design, construction, equipment and maintenance of a new healthcare campus in the Turkish capital of Ankara.
The campus will span several administrative buildings and state-of-the-art research laboratories affiliated with the Turkish Ministry of Health.
The first of its kind, the new facilities will respond to the ever-growing need for new, emerging medical technologies that are transforming healthcare and providing benefits for both patients and healthcare professionals.
Under its A/B structure, the EBRD is providing €75 million on its own account; while €35 million is being syndicated to UniCredit and €14.5 million to Siemens Bank.
Other lenders include the Black Sea Trade and Development Bank with a syndicated loan of €50 million, the Islamic Development Bank with syndicated financing of €175 million, the Development Bank of Austria with a €30 million loan,the ECO Trade and Development Bank with €15 million, and the Islamic Cooperation for the Development of the Private Sector with €25 million. QNB Finansbank is contributing €75 million.
Arvid Tuerkner, EBRD Managing Director for Turkey, said: "The EBRD is pleased to be able to support the first private company to work with the government on leading-edge medical research infrastructure. We are proud to have been able to attract financing from both development banks – including the Development Bank of Austria and the ECO Trade and Development Bank for which this is the first such project in Turkey – and commercial lenders alike. We are confident this comprehensive financing package will boost medical innovation in Turkey for the benefit of all."
The new facilities will be built and maintained by CCN Yatirim Holding, while Turkey’s Ministry of Health will conduct research activities under a public-private partnership (PPP) model. CCN Yatirim is also contributing to the cost of the project which has a total value of €711 million.
CCN Yatirim Holding is a leading private hospital developer in Turkey and is the sole investor in two other healthcare PPP campuses, with a total bed capacity of 5,000.
The project is part of the Government of Turkey’s programme to build or expand hospitals across the country in collaboration with the private sector.
Since 2015, the EBRD has financed nine large-scale hospitals developed under the private-public model across Turkey, adding almost 14,000 hospital beds for the well-being of all in the country. Through its work with the Turkish Ministry of Health, the Bank has also been instrumental in enabling greater private-sector involvement in the hospital sector.
The EBRD is a major investor in Turkey. To date, the Bank has invested over €9.5 billion in various sectors of Turkey’s economy, with almost all investments in the private sector. In 2017, the EBRD expects to exceed €1.5 billion in investments in the country.