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CEE & Turkey

CASE STUDY: The First Greenfield Green Infrastructure Project Bond in Turkey

Rönesans Healthcare Investment issued Turkey’s first green infrastructure project bond to help finance the development of the Elazığ City Hospital, deploying a new and innovative credit enhancement scheme that helped the issuance soak up global investor liquidity and push the Turkish PPP market forward.

Feb 2, 2017 // 5:43PM


Rönesans Healthcare Investment was seeking to raise fresh funds from the private sector to help fund the Elazığ City Hospital, part of a public-private partnership (PPP) undertaken by Rönesans.

Due to be completed in 2018, the Elazığ City Hospital will consist of a 355,000 square meter facility that will service up to 20,000 patients and house 1,038 new beds. Once constructed, the health campus is set to become one of the largest hospitals with earthquake isolation in the world.

On 13 December 2016, the company priced a €288mn dual-tranche project bond, the largest single investment into the region’s healthcare industry, and the country’s first green project bond.

Transaction Breakdown

Rönesans split the €288mn dual-tranche bond into a €83mn 18-year tranche and a €205mn 20-year tranche, and was marketed largely to green and social investment funds globally.

The €360mn project also saw a €72mn equity investment provided by the shareholders of ELZ Saglik Yatirim, the project development company, led by Turkish construction company Rönesans Holding

The project has been certified as a Green and Social Bond by the Vigeo EIRIS, which analyses the environmental, social and managerial characteristics of projects in international markets.

The bond was privately placed exclusively with global investors including the FMO, IFC, Industrial and Commercial Bank of China (ICBC), Intesa Sanpaolo, MUFG, Siemens Financial Services, and Proparco.

Rönesans developed an innovative credit improvement tool jointly with the European Bank for Reconstruction and Development (EBRD) and the Multilateral Investment Guarantee Agency (MIGA), along with the French investment fund Meridiam, which helped boost the bond’s credit rating to Baa2 (Moody’s) and help reduce overall risk.

The deal was the first of its kind in the Turkish capital markets, and could open the door for other PPP developers to adopt a similar funding structure.

CEE & Turkey Deals CEEMEA Middle East

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