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JBIC, Japan megabanks to co-finance hospital in Turkey

  • July 21, 2017
  • , Sankei , p. 13
  • JMH Translation

The Japan Bank for International Cooperation (JBIC) and Japanese megabanks will provide a syndicated loan totaling 163 billion yen to finance the construction and operation of one of the largest general hospitals in Turkey, sources revealed on July 20. The creditors will extend the loan to a new company jointly established by Japanese trading house Sojitz and a Turkish company to participate in the hospital’s management. The plan will financially bolster the Japanese government’s goal of exporting medical and nursing services, which is part of its new growth strategy.

 

The JBIC will lend up to 81.3 billion yen, the largest loan it has ever made to Turkey. Sumitomo Mitsui Banking Corporation, Bank of Tokyo-Mitsubishi UFJ, and Nippon Life Insurance Company will also join the syndicate. The JBIC will partially insure loans provided by commercial banks against political risk in Turkey. The remainder will be covered by an insurance policy provided by the Nippon Export and Investment Insurance (NEXI). The syndicated loan proposal will be officially signed as early as July 20 (local time).

 

The hospital will be built in Istanbul, Turkey’s largest city, with construction slated to begin in September. It will open in October 2020 as Turkey’s general hospital with the largest number of beds (2,682 beds).

 

The hospital will be built and operated under a private-public partnership using private funds. A special purpose company in which Sojitz controls a 30% stake and a Turkish construction company holds 70% will manage the hospital for 25 years and pass on Japan’s advanced expertise in hospital operation. The new company will receive a fixed amount of money every month from the Turkish government as a “facility operation and management fee.”

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