Highways   Build-Operate-Transfer (BOT)

9/6/2019

KGM, Çanakkale Bridge and Kınalı-Tekirdağ-Çanakkale Savaştepe Motorway Project

ÇOK A.Ş. Board Member Başar Arıoğlu: "The Project's financing received 11 awards from reputable organizations worldwide. We have achieved a significant success and we are proud of it. The credit package is made up of eight different credit segments including the Export Credit Agency (ECA) and Islamic funding methods. The Korean Eximbank (Kexim) and Korea Trade Insurance Corporation (K-SURE) have taken part in the financing with the largest credit package allocated to a project in Turkey so far with cash credit and guarantee subsidies of €1 billion.

One of the giant Build-Operate-Transfer (BOT) motorway projects of the Ministry of Transport and Infrastructure, General Directorate of Highways (KGM), the Çanakkale Bridge and Motorway Project (1915 Çanakkale Project) that is being built by and under the sponsorship of the joint venture of Limak-Yapı Merkezi-Daelim-SKE&C has increased the number of its awards to 11. 

The finance structure formed by 25 banks and finance organizations for the 1915 Çanakkale Bridge and Motorway Project that will host a bridge with the world's largest abutment clearance has received 11 global financing awards from the world's reputable organizations such as PFI, Bonds&Loans, IJGlobal, IFN and EMEA Finance.

It is expected that more than €3 billion of investment will be made for the Project with a total contract period of 16 years, 2 months and 12 days including construction and operation. A €2.265-billion credit with a grace period of 5 years and a repayment period of 15 years was provided for the project in March 2018. 70 percent of this amount was provided by 19 foreign banks and financial organizations and 30 percent was provided by Turkish banks, namely Akbank, Finansbank, Garanti Bankası, İş Bankası, Vakıflar Bankası and Yapı Kredi TEBA:1858/ March 16, 2018.

ÇOK A.Ş. Board Member Başar Arıoğlu:

Noting that they achieved a significant success in a short time by financing the project in a timely manner, increasing the diversity of resources and the interest of international credit organizations, ÇOK A.Ş. Board Member Başar Arıoğlu mentioned their happiness with this achievement. Arıoğlu said: "We brought together leading Turkish and international financial organizations for financing. On the other hand, the Project's financing received 11 awards from reputable organizations worldwide. We have achieved a significant success and we are proud of it."

Drawing attention to the size and diversity of the financing structure, Arıoğlu said: "The credit package structured in international project funding standards is made up of eight credit segments including the Export Credit Agency (ECA) and Islamic financing methods. Korean export subsidy organizations, Korean Eximbank (Kexim) and Korea Trade Insurance Corporation (K-SURE), have taken part in the financing with the largest credit package allocated to a project in Turkey so far with cash credit and guarantee subsidies of €1 billion. The export subsidy organization of Denmark - EKF - and the Investment and Export Credit Insurance Organization ICIEC that is affiliated with the Islamic Investment Group are among other organizations."

The awards received by the Project:

Deemed worthy of the "Turkish Financing of the Year" award in London by the Project Finance International (PFI) on February 6, 2019, the 1915 Çanakkale Project received the "Project and Infrastructure Funding of the Year" award at the IFN Awards organized by the Islamic Finance News (IFN) in Dubai on March 10.

It also ranked the first in the category of Motorways in Europe at the award ceremony organized by IJGlobal in London on March 21, and received the awards "Project Finance of the Year" and "Infrastructure Finance of the Year" in the "Bonds & Loans of Turkey" awards that are also known as the "Finance Oscars of Turkey" TEBA:1914/ April 19, 2019.

Having been considered "The Best Project of the Year Subsidized by Eximbank" at the Proximo Finance awards held in Lisbon on May 31, the project received five awards as the "Best Project Finance" of Europe as well as the "Best Public-Private Partnership Project", the "Best Project Finance in the EMEA area", the "Best Road Project" and the "Best Syndication Credit" awards at the EMEA Finance awards in London in June.