Highly Strategic Project for the Republic of Turkey - Upon completion, the Project is expected to have a substantial and positive impact on the economy of both the Republic of Turkey and specifically the Tekirdag and Çanakkale provinces. Overall, the Project is expected to generate over...show more
Highly Strategic Project for the Republic of Turkey - Upon completion, the Project is expected to have a substantial and positive impact on the economy of both the Republic of Turkey and specifically the Tekirdag and Çanakkale provinces. Overall, the Project is expected to generate over € 16 billion of total value-added impact during the concession tenor across construction, operation & maintenance, travel efficiencies, and increased tourism. The Project will represent a new, high quality transport link between the European & Asian parts of the Republic’s Marmara region. It is thus expected to facilitate enhancement of trade & commerce flows both within the Republic and between multiple countries in Asia and Europe that are located in the Project’s hinterland.
Substantial foreign debt funding - The Project represents a breakthrough in the Turkish road / bridge PPP space via its mobilization of substantial foreign funding. Previous deals had largely utilized domestic funding sources, and both the Sponsors and the Republic of Turkey desired a precedent setting, foreign financiers dominated funding mix to lay the groundwork for future domestic infrastructure projects. The debt mix included a combination of a KEXIM direct loan, a KEXIM covered loan, a K-Sure covered loan, and an EKF covered loan. The Project also successfully mobilized Islamic funding from Kuwait Finance House and Kuveyt Türk.
Successful close despite immense time pressure - The transaction was executed in an exceptionally expeditious manner. The Consortium executed the concession in March of 2017 and executed core finance documents in March of 2018. This expedited timeline is even more noteworthy given that the transaction tapped over half a dozen different pools of liquidity. Despite the timelines pressures, the financing achieved several notable “firsts” including its status as the 1st financing of a KGM sponsored project by export credit agencies and Korean institutional investors and the 1st major international financing after the Republic’s new debt assumption regulations became effective.show less