IFC becomes shareholder in Turkey's construction giant Rönesans

The International Finance Corporation (IFC), a member of the World Bank Group, announced on Monday that it had become a shareholder in Turkish construction giant Rönesans Holding making a $215-million equity investment.

The agreement is expected to improve the company's competitiveness, help its global expansion and assist in preparation for a future initial public offering (IPO), IFC said in a written statement.

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 sectoral presence in industrial infrastructure projects, the statement read.

Increasing cross-border investments in developing countries is among the five strategic goals of the IFC, said the statement adding that the partnership with Rönesans aims to increase the group companies to boost their investments in regions such as Africa, Middle East and Caucasus.

“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 Ilicak Kayaalp, Chairperson of Rönesans Holding.

“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,” she added.

IFC previously supported Rönesans for a hospital construction project in Turkey's southern Adana province launched within the scope of a nationwide health program backed by the World Bank with the aim to improve the country's public hospital infrastructure through a public-private partnership model.

Turkey is the second largest country of operations for IFC globally and the host to its largest office outside of Washington DC.

IFC, which is the largest global development institution focused on the private sector in emerging markets working with 2,000 businesses worldwide, had three consecutive record years in Turkey investing $1.8 billion in projects in the last fiscal year.

“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 Carsten Mueller, IFC Regional Industry Head of Manufacturing, Agribusiness and Services in the Europe, Middle East and North Africa region.

Established in 1993 by Erman Ilicak, Rönesans 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.