European bank arranges financing for Central Anatolian hospital

KONYA

The European Bank for Reconstruction and Development (EBRD) has announced it is co-financing the development of a 318 million-euro high-tech hospital in Konya, a city in Turkey’s central Anatolian region in a written statement on Feb. 23. 

As part of a comprehensive long-term financial package, the EBRD has arranged a 147.5-million-euro-of syndicated loan under its A/B loan structure, with 67.5 million euros for the Bank’s own account and 80 million euros of syndicated to UniCredit Bank Austria AG and Siemens Financial Services. 

The Black Sea Trade and Development Bank and the Islamic Development Bank are providing parallel financing of 50 million euros and 67.5 million euros respectively, according to the statement. 

This is the first project finance transaction by the Islamic Development Bank in Turkey and the first healthcare PPP project it has ever financed, added the statement. 

The new hospital in Konya, the seventh most populous city in Turkey, will be designed, built, equipped and managed by the private developer ATM Sağlık Konya Yatırım ve İşletme A.Ş. The company is owned by YDA İnşaat Sanayi ve Ticaret A.Ş., the construction arm of the EBRD’s longstanding partner in Turkey, YDA Group. 

The hospital complex will span several buildings with a total of 838 beds, providing better hospital facilities for the city and the region. Under a 28-year concession, the buildings will be leased to Turkey’s Ministry of Health. The private developer will act as facilities manager, providing building maintenance and non-clinical services, while medical services will remain the remit of the Ministry of Health. The hospital is expected to become operational in 2019, according to the statement.