Business

Foreign companies line up to finance Turkey’s megaprojects

Foreign companies line up to finance Turkey’s megaprojects

Foreign companies line up to finance Turkey's megaprojects

Foreign banks, which saw that political stability in Turkey gained continuity following the referendum, have put major projects in the country under their radar. Leading banks in Germany have lined up to finance the third airport project. Accordingly, Germany's largest bank, Deutsche Bank, has launched negotiations to refinance the third airport. A 4.5 billion-euro financing agreement was signed with six banks for the first round of the 150 million passenger-capacity project. Previously, Deutsche Bank offered to refinance the first phase financing package for the İzmir-Istanbul highway project. The bank held talks with eight Turkish banks again, and the loan was renewed at a lower rate.

Moreover, Export-Import Bank of Korea (KEXIM) Turkey Chief Representative Ahn Sang-Seon pointed out that the Çanakkale 1915 Bridge is an important project not only for the development of the region but also for Turkish history, stressing that this project will be realized where the Turkish military achieved an important victory and will be inaugurated in 2023 when the 100th anniversary of the Republic of Turkey is celebrated. "During the bidding process, we sent our letter of intent about the financing of the project to the consortium. We currently continue our support for the financing of the project," Sang-Seon added.

The consortium that won the bid for the Çanakkale 1915 Bridge has two Korean contractors and Turkey's leading groups, Limak and Yapı Merkezi. Daelim and SK fulfill an important criterion of having a Korean investor group among Kexim's financing terms. Sang-Seon, who met a group of journalists the other day, provided information about the bank. Sang-Seon said that Kexim, founded in 1976, has 28 agencies around the world and that they opened their agencies in Turkey three years ago.

Suggesting that Turkey is a market that offers very attractive opportunities for investors in developing countries, Sang-Seon said the country's economy entered the stabilization process very quickly in 2017, indicating that dollar-TL parity has currently stabilized around 3.50 while occasionally rising to TL 4. "Exports grew by 8 percent in the first quarter last year. Turkey is a country with strong potential. Investments by Korean companies in Turkey are increasing and their targets are growing. We are here to support these investments," he said.

Sang-Seon said that Korean investors recently undertook some important purchases in Turkey, noting that CJ CGV purchased Mars Cinema for $800 million and that they financed $180 million of this purchase. "Apart from this project, we made a loan of $1.5 billion available in Turkey in June, including financing for the Eurasia Tunnel, the Third Bridge, the Kırıkkale Natural Gas Power Plant and the Gaziantep City Hospital project," he said, adding that the Çanakkale 1915 Bridge and Highway project is next.

Underlining that the project will contribute to development in the region in many ways, Sang-Seon said that they are also aware of its importance in terms of the history of the Republic of Turkey, stressing that this project will be realized in the region where the Turkish army achieved an important victory and will be inaugurated in 2023 when the 100th anniversary of the Republic of Turkey is celebrated. Pointing out that the bridge will be the longest suspension bridge in the world, with a central span of 2,023 meters, Sang-Seon said: "During the bidding process, we sent our letter of intent about the financing of the project to the consortium. We currently continue our support for the financing of the project,"

The consortium of banks to finance the project is expected to be formed in August or September and financing will be provided as soon as possible, while the closing is expected to be completed by March 2018. Detailed engineering and design studies for the bridge continue.

Source: Daily Sabah

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GoodMorningTurkey.com is your online news source about Turkey which has become one of the most closely followed and frequently discussed countries in the world. Turkey is increasingly becoming involved in world affairs, with its positive economic developments and intercultural interactions. Being strategically located between Asia, Europe and Middle East, geographically Turkey is playing an important role in the world affairs. Turkey has become world focus, and a role model country for many surrounding neighbors as a result of the recent developments and changes in the region.

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GoodMorningTurkey.com is your online news source about Turkey which has become one of the most closely followed and frequently discussed countries in the world. Turkey is increasingly becoming involved in world affairs, with its positive economic developments and intercultural interactions. Being strategically located between Asia, Europe and Middle East, geographically Turkey is playing an important role in the world affairs. Turkey has become world focus, and a role model country for many surrounding neighbors as a result of the recent developments and changes in the region.

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