IFC to invest $85M bond in next gen Turkish health

By Dilara Zengin

ANKARA (AA) – The International Finance Corporation (IFC) announced Thursday it would invest €80 million ($85.3 million) in a project bond to support construction of next-generation health care facilities in Elazig, eastern Turkey.

"The 20-year bond, which totals €288 million (approx. $307.3 million), is the first project bond financing of a hospital under a public-private partnership (PPP) in Turkey,” a member of the World Bank Group said in a statement.

The IFC, which is a member of the World Bank Group, noted that the project seeks to improve access to high-quality public health services in the region.

“We highly value IFC’s participation in this transaction” said Kamil Yanikomeroglu, board chairman of Ronesans Healthcare and Real Estate divisions. “IFC has played an important role in helping us tap into a diversified set of institutional investors.”

The bond is also the first “green and social” project bond in Turkey, according to rating company Vigeo, IFC said. "The proceeds will finance construction of a campus, equipped with climate-friendly technologies," it said.

“Capital markets create access to long-term, stable financing, that can play a critical role in expanding affordable health care services for a large part of population,” Aisha Williams, IFC Country Manager for Turkey, said.

“Successful issuance of the bond for the health campus in Elazig is expected to pioneer the market, allowing other projects to explore similar structures for mobilizing long-term financing for Turkey’s health care sector,” she added.