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Republic of Turkey / Insurance to Support Investment and Finance in Hospital PPP project
- NEXI’s First Support for Hospital PPP Project -


July 21, 2017

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Kazuhiko Bando) has decided to provide insurance for investment and loans in the Republic of Turkey’s hospital public-private partnership (PPP) project. This is the first time NEXI has provided insurance to support a hospital PPP.

The project will design and build a large-scale hospital with 760 thousand square meters and 2,682 bed capacity in Ikitelli, Istanbul, through the Istanbul PPP healthcare investment made jointly by Sojitz Corporation (Sojitz) and Ronesans Holding A.S., Turkey’s major construction company. The two companies will jointly operate the facilities and do maintenance over a 25-year period. Sojitz will also introduce Japan’s advanced hospital management know-how to Turkey through the investment in the operation and maintenance company.

Due to rising population and improved medical availability thanks to the introduction of universal health-care coverage in 2008, a steady increase in the number of patients has outstripped the growth of medical facilities in Turkey. To cope with such situations, the Turkish government is proceeding with the construction and operation of hospital facilities through PPP, planning to provide 40 thousand beds. As the core of the project, the Ikitelli facility construction is expected to contribute to further improvement of the healthcare environment in Turkey.

Of all the loans (approximately JPY 163 billion) extended in the form of co-financing, NEXI will provide insurance to support approximately JPY 65 billion loans extended by Sumitomo Mitsui Banking Corporation, Nippon Life Insurance Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Standard Chartered Bank Tokyo Branch, The Dai-ichi Life Insurance Company, Limited and The Iyo Bank, Ltd.

NEXI will also provide investment insurance to support Sojitz’s investment in the project (approximately JPY 33.4 billion) in addition to reinsurance to cover part of Turkey’s political risks guaranteed by the World Bank’s Multilateral Investment Guarantee Agency (MIGA) for part of Sojitz’s investment and financing.

As a financial institution implementing Japan’s policy, NEXI will continue to promote overseas business by Japanese companies including infrastructure development and medical equipment export.

(Reference)
(1) Insurance for loans
Insured Sumitomo Mitsui Banking Corporation, Nippon Life Insurance Company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Standard Chartered Bank Tokyo Branch, The Dai-ichi Life Insurance Company, Limited, The Iyo Bank, Ltd.
Insurable Value Approximately JPY 65 billion
Tenor 18 years
Covered Risks Political Risk 100%, Commercial Risk 90%
(2) Insurance for investment
Insured Sojitz Corporation
Insurable Value Approximately JPY 33.4 billion
Tenor 29 years
Covered Risks Political Risk 95%

Contact: Overseas Investment Insurance Underwriting Group, Underwriting Department
Natural Resources Group II, Structured and Trade Finance Department

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