Bank of China contributes to EUR 2.4 billion syndicated loan for Ankara-Izmir High-Speed Railway Project (Linked to Record ID#100715)

Bank of China and ICBC contribution to EUR 2.4 billion syndicated loan for Ankara-Izmir High-Speed Railway Project On December 17, 2021, Turkey’s Ministry of Treasury & Finance signed a EUR 2.4 billion syndicated loan agreement with a group of Chinese and non-Chinese banks for the Ankara-Izmir High-Speed Railway Project.

The loan has two tranches: a UKEF-backed EUR 2.13 billion, 17.5-year buyer’s credit tranche with 4 participants (Helaba, DZ Bank, BBVA, KfW IPEX-Bank) and a EUR 324.39 million, 10-year commercial tranche with 9 participants (Credit Suisse, Standard Chartered, Société Générale, Finansbank, ICBC, Turkiye Vakiflar Bankasi, Bank of China, Turkiye is Bankasi (Isbank), Turkiye Garanti Bankasi).

Credit Suisse and Standard Chartered acted as joint MLAs, coordinators and bookrunners.

The purpose of the project is to construct a 503.2 km high-speed rail connecting Ankara, the capital of Turkey to Izmir, the third largest city. The project is part of Turkey's master plan to develop a 10,000 km network of high-speed rail lines by 2023.

The project is expected to alleviate traffic congestion and reduce CO2 emissions by providing an alternative to current air and road routes, which resulted in the financial transaction being classified as a ‘green loan’ under LMA’s Green Loan Principles.

Ankara-Izmir YHT Yapımı Is Ortaklıgı (a consortium involving ERG International UK, ERG İnşaat Ticaret ve Sanayi Anonim Şirketi, and SSB Sauerwein & Schaefert) is the EPC contractor responsible for project implementation. The project’s groundbreaking ceremony took place on August 30, 2022.

Record ID#96081 captures the estimated financial commitment of Bank of China to the EUR 324.39 million syndicated loan tranche, while Record ID#100715 captures the estimated financial commitment of ICBC to the same tranche.