| Project Detail |
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed, on July 20, a loan agreement for project finance*1 with Istanbul PPP Saglik Yatirim A.S. (hereinafter, "IPSY"), a Turkish corporation in which Sojitz Corporation, a Japanese company, and Ronesans Holding A.S., a company based in the Republic of Turkey (hereinafter, "Turkey"), have stakes, amounting up to approximately 81.3 billion yen (JBIC portion) for the Istanbul Ikitelli Integrated Health Campus ("Ikitelli IHC") public-private partnership (PPP) project located in Istanbul, Turkey. The loan is co-financed with Sumitomo Mitsui Banking Corporation, Nippon Life Insurance Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Standard Chartered Bank Tokyo Branch, The Dai-ichi Life Insurance Company, Limited, and The Iyo Bank, Ltd., with a total co-financing amount of 163 billion yen. JBIC provides a political risk guarantee for a part of the portion provided by private financial institutions whereas Nippon Export and Investment Insurance (NEXI) provides insurance for the remaining part of the portion.
In this project, IPSY will build Ikitelli IHC, which will be one of the largest hospital complexes in Turkey (total number of beds: 2,682), in the Ikitelli District, Istanbul, Turkey. The Ministry of Health of Turkey will provide medical services, while IPSY will conduct operation and administration of the facilities under a PPP scheme. Under this loan and guarantee, the Japanese company will participate in the project as an investor, and manage the operations and administration under a 25-year contract while supporting the large hospital PPP strategy of Turkey which plans to introduce the operational and administrative know-how of Japanese hospitals. This is the first case of supporting a hospital PPP project for Japanese companies as well as for JBIC.
In response to the increasing demand for medical services reflecting a rising population and economic growth in recent years in Turkey, hospital development projects through PPP have been promoted by the Turkish Government. Under these circumstances, the Turkish Government positions this project as critical for establishing a large-scale integrated hospital in Istanbul, the largest city in the country. The loan and guarantee will contribute to the progress of the hospital business led by the government in addition to financially supporting the participation by Japanese companies in overseas infrastructure business.
The "Healthcare and Medical Strategy" as announced in July 2014 (partially amended in February 2017) by the Japanese Government, expresses the promotion of overseas development of Japanese medical services. Furthermore, "Investments for the Future Strategy 2017" as publicized in June 2017 declares that the acquisition of, and contribution to, the global markets by Japan should be focused on by supporting the establishment of local medical institutions which will be operated by Japanese companies. This loan and guarantee are in line with the policy of the Japanese Government.
As Japans policy-based financial institution, JBIC will continue to contribute to the expansion of the overseas business deployment of Japanese companies and financially support the maintenance and enhancement of the international competitiveness of Japanese industries by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function. |
