Watson Farley & Williams advised ICA Ictas Altyapi Yavuz Sultan Selim Koprusu ve Kuzey Cevre Otoyolu Yatirim ve Isletme A.S. (“ICA”) on its issuance of US$405m 7.536% Secured Amortising Notes, the proceeds of which will be used to finance the construction and operation of the Sariyer-Kilyos Motorway Tunnel project in Istanbul, Türkiye.
This landmark deal is the first financing of a motorway PPP deal in Türkiye through bond issuance and is supported by a debt assumption agreement from the Turkish Ministry of Treasury and Finance. Listed on the Luxembourg Stock Exchange, the notes were issued on 31 October 2024 and the initial purchaser was JP Morgan.
The Sariyer-Kilyos Motorway Tunnel project will connect the northern suburbs of Istanbul to the city centre and runs a total length of 8.2 km which includes 1.3 km of access roads and the 6,875 metre Sariyer-Kilyos Tunnel. Scheduled to open in 2026, the tunnel should cut journey times for motorists whilst reducing air and noise pollution caused by traffic.
ICA is a member of the IC Holding Group and the European Association of Toll Road Infrastructure Operators (“ASECAP”). ICA constructed and operates the Yavuz Sultan Selim Bridge, also known as the Third Bosphorus Bridge, over the Bosphorus Strait which opened in 2016.
The cross-border, multi-disciplinary WFW team that advised ICA was led by London Capital Markets Partner Simon Ovenden and Frankfurt Project Finance Partner Riko Vanezis. They were supported by London Associate Chris Madoc-Jones, Frankfurt Associates Alejandra Hagedorn and Anindhya Shrivastava, Frankfurt Transaction Lawyer Ayşegül Sargin and London Trainees Luke Stafford and Carita Hsui.
Riko commented: “We are delighted to have advised on this landmark transaction that is the first of its kind in Türkiye. This mandate highlights both our continued growing reputation for excellence in the infrastructure sector and the seamless collaboration across our international network”.
Lexist acted as ICA’s Turkish legal counsel, with White & Case and Ergün Law Office representing JP Morgan.
