In financing the project, banks will run faster in the second half


In the 6 monthly period of this year, 4 was signed with a billion-dollar transaction, while in the third quarter the volume was 2.5 billion dollars.

In the project finance, which has been powered by energy until now, the engine of growth this year was the infrastructure and highway projects. Ebru Dildar Edin, Executive Vice President of Garanti Bank, predicted that the total volume in the sector will be about 11 billion dollars this year, while yıl 70 of the completed projects will come from the infrastructure Garanti. In the first half of this year, the impact of relatively slowing investments in the referendum on the project financing is reflected by the Edin, as of June, the business speeding up when specifying "the second half, the first half of the deficit will be closed," he said.

Although the last signatures to 2018, the last quarter of the year will be Canakkale Bridge and Northern Marmara Highway financing. In the coming 2 year-long process, Garanti expects the development of project finance to cover more medium-sized projects, as well as refinancing to the extent that market conditions allow it, except for certain large public projects.

We talked with Ebru Dildar Edin, Deputy General Manager of Garanti Bank, about the last point in project finance. project finance banks, according to the size of the Turkish Banks Association of Turkey passed 80 billion dollars. The amount of credit given in the first 6 of this year was 4 billion dollars.

3.2 billion dollars of this figure came from new jobs, while 800 million dollars came from refinancing. Ebru Dildar Edin, işler New jobs were mainly infrastructure projects. Most of this was on the freeways. In the first half of this year, the 2 billion dollar highway project was funded. The North Marmara Motorway's 700 million dollar bridge is in this volume. 4 billion dollars of 1 billion dollars was used in the purchase process. 2016 6 billion dollars in energy in the 6 800 XNUMX a month this year, the figure fell to $ XNUMX million dollars.

The energy was mainly focused on refinancing. After the first 6 month, a movement started again. 2 has been closed for 2.5 billion dollars, including refinancing of Antalya Airport and İkitelli PPP hospital projects in the XNUMX monthly period.

The total amount of project finance that was closed last year was 16 billion dollars. The size of the financing closed in the first half of this year is 4 billion dollars. The figures are moving below last year. Edin described his numerical expectations as follows: bek We expect 7 to be a billion dollar volume, although some are refinancing in the second half. We think that we will close the year with a volume of 11 billion dollars. There will be projects to be closed in 2018. YEKAs are the end of this year, but probably the North Marmara Motorway, the Çanakkale Bridge, the hospitals that can be the next year, the 2018 billion dollars in 15.
“The best period of the year will be the last quarter”

Annual figures in Turkey compared to the projects and structured finance volume in 2015 34.6 billion dollars. In the year in question, except for bridge loans and refinancing, new financing was provided for 23.5 billion dollars. The total number reached in 2016 is 16.2 billion dollars.

The 2015 billion-dollar volume, which was reached with the impact of the projects carried out in that period, described the 34.6 billion-dollar volume as a nit wonderful year hac and said, ılan What we expect for the end of this year is the 11-13 billion-dollar range. In this decline, we observed that both the regional developments and the referendum, as well as the great work already set in motion, decreased the appetite for investment. Investor does not want to take action without seeing the front. But we can easily say that the second half of the year went better than the first half. While the 4 billion-dollar volume was formed by the end of June, there has been a serious movement from that day until the end of August; 2.5 billion-dollar financing, including refinancing of Antalya Airport and Ikitelli PPP hospital projects, was closed. This figure was only 400 million dollars refinancing. The last quarter of this year will be the best quarter of the year and go faster. The year will save the last quarter, Y he said.
“We see a movement like 2015 in 2020 and later”

'When does the wonderful year after 2015 come for project financing?' And when we say, Edin, X 2018 and 2019 for election year have no such expectation. Traditionally, there is a slowdown in the election years. This can be spoken for 2020 and later. But in order to reach these volumes, not only the private sector, but also the public's big projects must be active. 3. tı If the market conditions enable a refinancing at that time, we will be talking about different volumes. de 3. The airport financing was 4.5 billion euros.

Ebru Dildar Edin, Executive Vice President of Garanti Bank, expressed his interest in the financing of the Çanakkale Bridge before expressing his interest in Korea. Only Deutsche Bank participated in the financing of the Gebze-Izmir highway. Now, the 2.5 of the Canakkale Bridge has declared its intent to fund up to 50 of Korea Eximbank for billion dollar financing. The remaining percent will join the Turkish banks for 50. We'il get together in September. In the first quarter of 2018, we need to take action in September as the timing for the final signatures. In

Edin, Turkish contractors, foreign investors 'can not be reached in time' each highway and infrastructure project under the successful project, he also mentioned.
"In financing funds in financing of acquisitions and mergers"

In addition, this year, the fact that the financing preference in purchasing transactions has been attributed to the use of private equity funds rather than loans, Edin said. At the 2018, Edin also assesses the possibility of transactions in which the bank channel can be used for the acquisition and merger transactions, and here it also thinks that the energy sector will come to the fore.

Edin said that they expect a consolidation in their energy portfolios. . We can see merger movements that can create synergies between investors with a renewable energy portfolio and investors with a thermal portfolio. Due to the pricing many projects are forced. Those who want to get a good opportunity to get rid of the debt burden and to see a good opportunity to transfer funds to companies who may emerge. Some investors also started coming. When it is an operation, it immediately begins to look at what is happening in the other funds in the market, whether there is an opportunity. Bir
“Garanti maintains its 10-15 percent market share”

While Garanti Bank's credit balance in project finance is around 13 billion, Vice General Manager Edin said, Edin As a bank, we have been financing major projects since 15-20. So now we have repayments every year. This year, due to reimbursement, we estimate that our growth will remain in the 3-5 range annually. Our market share in new jobs every year varies between 10 and 15. We're calculating the same amount this year. Therefore, the sector 11-13 billion-dollar volume 1-1.5 billion dollars in the new business we will have received. These figures will change if we buy a surprise purchase and talk about financing. Sür

In Garanti's current portfolio, the share of energy, especially renewable, is high, while the newcomers are mainly infrastructure and highway loans.
“The appetite of foreigners is open and competitive in PPPs”

The financing model established in PPP projects is also very good, says Edin. Finans So much so that not only Turkish banks but also foreign banks have started to participate in the financing of these financing. For the first time, we have seen foreign banks in project financing. The maturities in these projects are up to 18 years. Foreign banks view and evaluate PPP financing as Treasury risk. In this, pricing is also very competitive. Their funding cost is at a more reasonable point for the investor de. Edin, the last 3 years of PPP hospital projects on the size of the financing reached 7.5 billion euros, he said.

Pointing out that banks may be in another area where they can provide project financing, Edin said, başka A great need for the industry may have been answered. Bank

The PPP model can also be used in the renewal of schools and prisons in the coming period, he said. Ila The hospital financing with PPP model will be followed by 3-4 billion euros. The size of the prison and school PPPs may rise up to EUR 15 billion, Ceza he said.
“YEKA's financing remains until 2018”

When we remind us that the problems such as the surplus in the energy market and the price imbalance are reflected in the financing side of the business, Edin said, ına The existing investors gave their priorities to the existing projects in their hands and not to the new projects. The Solar Energy and Wind YEKA tenders, which we care about in the scope of national energy program, have been concluded. Financing of these projects will find 2018 not this year. Other projects were a condition of the production in these auctions to be held in Turkey differently. Therefore, after the establishment of the facility, feasibility and supply of the plant to be produced, YEKAs will be negotiating with the banks for project financing. 2018 in the sun in the first quarter, the wind may remain in the second quarter, Gün he said.
No approval for non-sustainable project

Ebru Dildar Edin gave an example of the importance of sustainability in project finance. “First of all, we have to work for the future of the world,“ he said. “First of all, we have to work for the future of the world liği said Edin, who explained the feasibility of the 2 HEPP in the South Aegean region due to the climate change in the world. We are going to do it, but because of climate changes, water flows are changing, so the project will come to a point where it can not pay itself. After the feasibility, the project was abandoned. F
7-8 Bank to set up sustainable financing principles

Sustainable Development and Global Compact Turkey vice chairman of Garanti Bank Deputy General Manager Ebru Dildar Edin, 7 - 8 bank that recently the Global Compact Turkey prepare and sustainable financing framework on bank financing will be some principle that while the fit of a declaration signed will also he said.

He also added that the meeting will be held at the end of September and that a forum will be held at the meeting.
Want to remove financial products

Ebru Dildar Edin, who noted that they would like to produce a financial product this year, said that they are working on financing a wide audience by focusing on energy efficiency. Edin, where the product on one side of the municipalities, especially the public, they said that they are doing research. The work is not only crediting, but also the creation of a new source of funding for the bank said that they work. . We hold these loans as Turkish banks in our balance sheets. However, foreign banks are giving this credit first. Then they sell to other investors outside the banks. We've teamed up with this. We will evaluate the sale of foreign banks to qualified institutional investors. So we're going to bring action to these loans. The second is to issue bonds. Bond issuance so far only used in the 2 project. After the completion of the investment period of a project, we can issue bond issues, which may be of interest to different investors. But this also depends on the legislation and market conditions, söylemek he said.

Source: Ece CEYHUN - I

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