Download full report The European Bank for Reconstruction and Development (EBRD) and the World Bank s Multilateral Investment Guarantee Agency (MIGA) have developed an innovative risk mitigation instrument which enabled the issuance of Turkey s first-ever greenfield infrastructure project bond. This example of innovative financing features a transaction with credit enhancement in the form of risk mitigation from two International Financial Institutions (IFIs). Due to its widespread potential applicability for emerging market infrastructure, the product is attracting widespread attention in the sector. It has a strong potential to be repeated in markets where certain underlying project risks are not able to be fully borne by capital markets and investors. Key Achievements First project to benefit from risk mitigation provided jointly by MIGA s political risk insurance coverage and EBRD s unfunded liquidity facilities First project bond financing for a greenfield infrastructure project in Turkey A1 Bonds were rated Baa2, two notches above Turkey s credit rating Vigeo Eiris certified the Elazig project bond as a green and social bond the first such certification for an infrastructure project in Turkey With a 20 year maturity, the bond had the longest maturity for the Turkish Integrated Health Campuses PPP Programme Project Overview The Elazig Integrated Health Campus project (Elazig) is a ¬ 360 million availability payment based greenfield project structured as a public-private partnership (PPP) that forms part of the Government of Turkey s Health Transformation Programme. Tackling unequal access to health care is a key priority of the Turkish government given that the number of hospital beds falls below the OECD average. As a result, it put in place the Health Transformation Programme to improve, modernise and expand healthcare services across Turkey. To achieve this aim, the Turkish Ministry of Health (MoH) with support from the IFI community, including the World Bank and the EBRD, developed the Integrated Health Campuses PPP Programme (Programme). This ambitious Programme is designed to deliver up to 29 new hospital facilities totalling 42,000 high-quality hospital beds over the next several years. To date, 11 hospitals have reached financial close, several more are awarded and nearing financial close, and the first three hospitals have completed construction. The hospital PPPs under the Programme are structured as design, build, finance and maintain
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