The world-renowned Turkish construction company Yapı Merkezi has signed a $100 million loan agreement with World Bank Group member International Finance Corporation (IFC) for high-quality railway projects in Africa, the company said in a statement yesterday.
Besides contributing to the expansion of Yapı Merkezi in sub-Saharan Africa, the Middle East, North Africa and Turkey, the loan provided by the IFC to Yapı Merkezi Holding, the parent company of Yapı Merkezi İnşaat ve Sanayi, will help to increase the private sector's role in challenging markets to build transport infrastructure.
The three-year term financing consists of a $75 million equivalent in a euro and dollar loan from IFC's own account and a $25 million equivalent in a euro-syndicated loan from Akbank AG under IFC's B-loan structure. The financing package will provide the Turkish company with working capital to allow timely completion of existing transportation infrastructure projects in Africa, the Middle East and North Africa (MENA) and Turkey and further support of the company's expansion in these markets, the statement said.
Yapı Merkezi Construction and Industry Inc. Chairman Başar Arıoğlu said: "Our values of doing business and objectives are aligned with the IFC. We believe that this financing will enable us to better serve our customers around the world."
Yapı Merkezi is building a total of 950 kilometers of railways in Africa, which will be instrumental in increasing exports for commodities such as gold and coffee. The company is also building railways, tramways and metro systems in the MENA region including Turkey as well as the world's longest suspension bridge in Turkey.
Carsten Mueller, the IFC's regional industry head for manufacturing, agribusiness and services in Europe, Middle East and North Africa, said one of their priorities in Turkey is to support the international expansion of strong, competitive Turkish companies.