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Allen & Overy and Gedik & Eraksoy advise on financing of an electric railway

Allen & Overy and Gedik & Eraksoy advised on the financing of 140km of a high-speed, low-carbon electric railway between Yerköy and Kayseri in the Ankara region of the Republic of Türkiye. A&O and G&E represented MUFG Securities EMEA plc (in its capacities as sole mandated lead arranger, coordinator, structurer and agent bank), Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A. and UK Export Finance on the hybrid €1.247 billion financing for the Turkish Ministry of Treasury and Finance.

The financing package consists of loans guaranteed by UK Export Finance, reinsurance cover provided by ECAs in Italy, Poland and Austria (SACE, KUKE and OeKB, respectively), as well as a separate commercial facility supported in part by the Islamic Corporation for the Insurance of Investment and Export Credit.  The financing was structured so as to allow institutional investors to participate alongside commercial banks.

Partners Adam Fadian, Joe Clinton and Lorraine Bayliss led on the lending and guarantee aspects of the transaction with support from lawyers Christopher O’Hara, Aaron Temple, Simon Brown and Vicky Chen in London. Partner Tanya O’Hagan advised on the financing from London and was supported by Eric Denton, Valentine Nguhi, Johnathan Khan and Charlotte Boyd.  

Turkish Partner Umut Gürgey led the Turkish law aspects of the transaction with support from lawyers Burak Ozsoy and Ceren Gurel (alumni). Partner Frank Mausen and Counsel Evelina Paglan advised on Luxembourg law matters. Partner Kate McInerney, assisted by Georgina Candy, provided support on insurance matters. Partner Charles Yorke, assisted by Lucinda White, Franz Kerger and Zofia White, provided tax advice.  

We are delighted to have been involved in this transaction, which brought together multiple financing sources to deliver a highly-innovative financing solution for an important sustainable railway project in Türkiye

Adam Fadian, Partner Allen & Overy

Further details of the transaction can be found on the UK Government’s website: MUFG and export credit agencies unlock €1.2bn financing for Turkish electric railway - GOV.UK (