EBRD backs bond issued by Mersin port operator

By Olga Rosca
@olgarosca

EBRD backs bond issued by Mersin port operator

  • Operator of Turkey’s largest port issues bond to raise funds for operations and new investments
  • EBRD backing helps attract investors despite difficult market environment
  • Enhanced port infrastructure encourages shift to green economy

The operator of Turkey’s Mersin International Port is raising funds by issuing a new US$ 600 million five-year bond backed by the EBRD.

The Bank has invested US$ 90million in the issuance, helping attract a host of investors, despite a challenging market environment in Turkey.

The proceeds of the bond will help refinance Mersin International Port’s 2013 bond, which matures in August 2020, will support ongoing operations of the port and will provide additional stability to the company’s balance sheet while also financing general corporate needs. The continued financing of existing investments is crucial for the company’s ability to run operations smoothly and pursue further growth.

Mersin International Port is a major investment by international players in Turkey. It is owned by PSA International, IFM Global Infrastructure Fund and Turkey’s Akfen Holding.

Located on the southeastern coast of Turkey in the city of Mersin and close to Adana, both of which are large regional cities, Mersin International Port is Turkey’s largest port terminal by tonnage and by import/export container throughput.

With 85 per cent of Turkish international trade being seaborne, developing the Mersin International Port – the gateway of Turkish industry and agriculture to the Middle East – is crucial for the country’s economy, and will also support growth in the wider region.

Enhanced port infrastructure also helps transform shipping into a more environmentally friendly alternative to land transport. Financing sustainable infrastructure and Turkey’s shift to a green economy are among the EBRD’s priorities in the country. The Bank also supported the Mersin port’s 2013 issuance, which was the country’s first infrastructure bond.

The EBRD is a leading institutional investor Turkey and since 2009 has invested more than €11.5 billion in almost 300 projects in Turkey. The overwhelming majority of EBRD investments in Turkey are in the private sector.