Turkey’s first-ever Greenfield Infrastructure Project Bond funds Elazig Hospital Project

International law firms Clifford Chance LLP and Yegin Ciftci have advised HSBC Bank plc in connection with the recent financing of the state-of-the-art Elazig integrated health campus using the first ever greenfield project bond structure in the Turkish PPP market.

HSBC Bank plc acted as sole arranger and global coordinator in the bond issuance. This project has been recognised as a landmark project as the first-ever greenfield infrastructure project bond in Turkey, being also the first of a such project to have a 20-year maturity in the country featuring an innovative credit enhancement provided by the European Bank of Reconstruction and Development (EBRD) and the World Bank’s Multilateral Investment Guarantee Agency (MIGA). In addition, the bonds were classified as “green and social” by the environmental, social and governance rating firm Vigeo EIRIS.

This transaction is expected to pave the way for other infrastructure projects to take advantage of the Turkish capital markets as an innovative alternative source of financing rather than relying on traditional funding sources.

Yegin Ciftci acted as Turkish legal counsel to HSBC Bank plc, with the firm’s finance team being led by partner Mete Yegin, whilst the Clifford Chance team was co-led by Paris-based partner Daniel Zerbib and London-based partner Clare Burgess, supported by a team of lawyers in London, Paris and Luxembourg. The team at Yegin Ciftci further comprised counsel Gozde Cankaya, senior associate Sait Eryilmaz and associates Gokce Uzun and Gozde Ozbeden. Key members of the Clifford Chance cross-border team included London-based senior associate Lucy Carr and associates Kathryn McArdle, Eimear O’Dwyer, and Russell Harris, with support from trainee solicitors Michael Obiri-Darko and Stephanie Ofili; Paris-based counsel Julien Rocherieux and Luxembourg partner Steve Jacoby and senior associate Markus Waitschies. A separate Clifford Chance team, led by partner Bruce Kahl, advised the trustee, and teams led by partners Catherine McCarthy, Emma Folds and Anne Drakeford advised certain investors.


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