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Istanbul, Turkey, July 11, 2016
—IFC, a member of the World Bank Group, is making a $215 million equity investment in Ronesans Holding, one of Turkey’s largest construction and infrastructure companies, to improve the company’s competitiveness, help its global expansion and assist to prepare for a future initial public offering (IPO).
Increasing investment flows from emerging markets into other emerging markets – often referred to as South-South investments – is one of IFC’s five core strategic objectives globally. IFC’s investment in Ronesans Holding will support the Group’s cross-border investments in Africa, the Middle East and the Caucuses and strengthen its sectoral presence in industrial infrastructure projects. In Turkey, IFC continues to promote South-South investments and has supported many companies to become regional pioneers through better governance, sustainable business practices and increased competitiveness.
I
pek Ilicak Kayaalp, Chairperson of Ronesans Holding 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 Ronesans 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 Ronesans 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.”
IFC has previously cooperated with Ronesans Holding providing financing to its construction subsidiary (RCI) to expand in the region and supported one of its Healthcare PPP (Public Private Partnership) projects in Adana. By becoming a shareholder, IFC will work with Ronesans to apply international best practice corporate governance and standards at the corporate level to enhance company’s access to international capital markets.
Carsten Mueller, IFC Regional Industry Head of Manufacturing, Agribusiness and Services in the Europe, Middle East and North Africa region, said: “IFC is proud to take its cooperation with Ronesans Holding to the next level and acquire a stake in this strong and dynamic Turkish group with international and regional presence. As a shareholder IFC will assist Ronesans 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.”
IFC’s work in Turkey is based on a joint Country Partnership Strategy (CPS) for the period 2012-2016 with key objectives of enhanced competitiveness and employment, improved equity and public services, and deepened sustainable development. Turkey is the second largest country of operations for IFC globally and the host to its largest office outside of Washington DC. IFC had three consecutive record years in Turkey investing $1.8 billion in projects in the last fiscal year.
About Ronesans Holding
Established in 1993 by Erman Ilicak,
Ronesans Holding furnishes services as the main contractor and investor in 21 countries throughout the world. Operating in such fields as construction, real estate development, energy and health, the Holding is the 37th largest international contracting company of the world and the 10th largest contractor of Europe. For more information, visit
www.ronesans.com
.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
.
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