Rönesans Healthcare Investment Co. Inc. Finances Elazığ City Hospital with Turkey’s First Baa2 rated Project Bond Export
Elazığ City Hospital to be implemented by Rönesans Healthcare Investment Co. Inc. (RSY) as part of the “Public-Private Partnership” (PPP) has obtained finance amounting to 288 million Euros through bond export from a group of investors totally consisting of foreign investors.
The project rating has been determined as Baa2 by the Moody’s thanks to the innovative credit improvement tool provided by the European Bank for Reconstruction and Development (EBRD) and the MIGA, a member of the World Bank Group.
Rönesans Healthcare Investment Co. Inc. (RSY), which has been continuing its operations under the roof of Rönesans Holding as one of the most important companies of Turkey in terms of health investment, has obtained finance through which it has led the way for Elazığ City Hospital that it would implement as part of the Public-Private Partnership (PPP) projects.
Elazığ project bond, namely, Turkey’s first project bond based on a 20-year term that is totally exported to foreign investors, consists of a brand-new credit improvement tool that has been jointly developed by the European Bank for Reconstruction and Development (EBRD) and the Multilateral Investment Guarantee Agency (MIGA). As a result, this is the first bond of Turkey that has been rated by the credit rating company Moody’s as Baa2.
Rönesans Healthcare Investment Co. Inc. has developed an innovative credit improvement tool jointly with the EBRD and MIGA, along with the French investment fund Meridiam that it has got into partnership in City Hospital projects that are carried out with the Public-Private Partnership model. As a result, Moody’s rated the project as Baa2.
The bond export amounting to 288 million Euros was made through private placement to a group of foreign investors consisting of the IFC (World Bank), MUFG (Japanese financial institution), Intesa Sanpaolo (Italian financial institution), Siemens Financial Services (German financial institution), Proparco (French financial institution), FMO (Dutch financial institution) and the Industrial and Commercial Bank of China (ICBC-Chinese financial institution).
Elazığ project bond is also the “Green and Social Bond”, which is critically important in the international arena. The project has been confirmed as a Green and Social Bond by the Vigeo EIRIS, which analyses the environmental, social and managerial characteristics of projects in international markets.
Services To Be Provided From Elazığ To Entire Region
Within the context of the Public-Private Partnership projects that are implemented as part of the Health Transformation Program, which is considered as the largest program ever implemented by Turkey in the health sector, and set to provide our country with a great many hospitals, Rönesans Healthcare Investment Co. Inc. (RSY) continues its work at a great pace. Elazığ City Hospital, which is involved in the RYS’s portfolio, aims at finding solutions to all health needs of the entire region with its inpatient bed availability, size, cutting-edge technology and earthquake-isolator design.
Elazığ City Hospital will furnish services to nearly 20,000 patients and patients’ relatives per day with its indoor construction site of 355,000 square meters and a total of 1,038 inpatient bed availability. It is considered that the project, which is scheduled to be completed in August 2018, will become the largest health investment that has been provided for the region until now.
Once completed, the health campus is set to become one of the largest hospitals with earthquake isolation throughout the world and provide solutions to health needs of the entire region.
As part of the PPP model, in which publicly owned investments are made by the private sector and rented out to the state for 25 years, the private sector is made liable to provide some services requested by the public during the term of lease. While the medical services are again furnished by the state, the entire physician and nurse staff is provided by the state. Within the context of this cooperation model dating back to 15 years to 30 years throughout the world, the duration for the projects in Turkey was determined as 25 years.