IFC becomes shareholder in Turkey’s Rönesans as group eyes int’l expansion and IPO
ISTANBULIFC, a member of the World Bank Group, has said it is making a $215-million equity investment in Rönesans Holding, one of Turkey’s largest construction and infrastructure companies, to improve the company’s competitiveness, help its global expansion and assist in preparation for a future initial public offering (IPO), in a written statement on July 11.
IFC’s investment in Rönesans Holding will support the group’s cross-border investments in Africa, the Middle East and the Caucuses and strengthen its sectorial presence in industrial infrastructure projects, the statement said.
“This landmark investment further deepens our partnership with IFC beyond specific projects. As a successful contractor and real-estate developer enlarging its presence in 21 countries across three continents, we attract the interest of international investment corporations. Less than two years ago, we partnered with one of the largest Asian state investment funds, GIC from Singapore, in Rönesans Real Estate Investments. Then, together with Meridiam, which is a global investor and asset manager based in Paris specialized in developing, financing and managing long-term public infrastructure projects, we founded Rönesans Healthcare Investments. IFC’s engagement at the corporate level will support our international expansion, garner recognition as a global contractor and create significant value for our stakeholders by improving our corporate-governance practices,” said Ipek Ilıcak Kayaalp, chairperson of Ronesans Holding.
IFC previously cooperated with Rönesans Holding by providing financing to its construction subsidiary (RCI) to expand in the region and supporting one of its Healthcare PPP (Public Private Partnership) projects in the southern province of Adana, according to the statement.
“IFC is proud to take its cooperation with Rönesans Holding to the next level and acquire a stake in this strong and dynamic Turkish group with an international and regional presence. As a shareholder IFC will assist Rönesans in expanding its operations in regions where investments are needed for development and job creation. We will also assist the company for a successful future IPO,” said IFC Regional Industry Head of Manufacturing, Agribusiness and Services in the Europe, Middle East and North Africa region Carsten Mueller.
IFC has had three consecutive record years in Turkey and invested $1.8 billion in projects in the last fiscal year, according to the statement.