The Private Equity Investment Fund (“PEIF”) established by IPM and their onshore Turkey partners, Actus Asset Management, to invest in the Gaziantep Healthcare PPP on behalf of KDB Infrastructure Investments Asset Management Co. Ltd (“KIAMCO”) has reached its equity close.
This has seen the PEIF capitalised by KIAMCO Global Infrastructure Fund No. 3 and KIAMCO Turkey Gaziantep Hospital Fund to make a c.EUR60m investment in the project, and the PEIF has subsequently become a shareholder alongside the project’s international sponsor consortium consisting of Samsung C&T of Korea, Salini Impregilio of Italy, and Kayi Insaat of Turkey. The Gaziantep Healthcare PPP is a 1,875 bed hospital project in south-eastern Turkey, the largest in the region and the 4th largest in the country, being developed under a 25-year Public Private Partnership model with Turkey’s Ministry of Health.
This investment represents one of IPM’s “first of its kind” transactions, using the Private Equity Investment Fund initiative introduced by Turkey’s Capital Markets Board in 2014, and the first time such a vehicle has been used to invest in Turkey’s infrastructure. The KIAMCO funds’ investment benefits further from political risk insurance provided by the Multilateral Investment Guarantee Agency (“MIGA”, part of the World Bank Group).
The investment follows years of work carried out by the IPM team since IPM’s inception with Samsung Life Insurance, one of the KIAMCO fund’s main investors, and the project’s sponsor consortium and their advisors to structure the transaction and prepare the project for investment, debt financing and construction.