ICA İçtaş Infrastructure Issues $405 Million Project Bond for Sarıyer-Kilyos Tunnel
Foreks - IC Holding group company ICA İçtaş Altyapı A.Ş. has made a breakthrough in Turkey's Public-Private Partnership (PPP) infrastructure project financing by issuing project bonds worth 405 million USD for the Sarıyer-Kilyos Tunnel project. The total funds raised from the bonds, prepared for international investors, will be used for the construction of the Sarıyer-Kilyos Tunnel.
ICA completed the issuance of Project Bonds valued at 405 million USD under the Sarıyer-Kilyos Tunnel, which is a Public-Private Partnership (PPP) project. The bond has an annual coupon rate of 7.536% and is structured to mature on October 31, 2027. The entirety of the funds will be used in the project construction, and the project’s environmental and social impact analyses, compliant with international IFC standards, have been successfully completed. The construction will be undertaken by IC İçtaş İnşaat.
Emphasizing that the Sarıyer-Kilyos Tunnel project represents a first in financing the construction phase of PPP infrastructure projects in Turkey through bond issuance, IC Holding CFO İsmail Birkan Özen stated, "We wish for the Sarıyer-Kilyos Tunnel project, which is critical as it embodies the vision to provide long-term and sustainable investments in infrastructure projects in Turkey, to serve as a model for similar future investments. With the bond issuance that we plan to evaluate for the financing of various different projects undertaken by our group, we aim to realize our new operations that require substantial investment."
The Sarıyer-Kilyos Tunnel will reduce travel time from 30 minutes to 5 minutes. Scheduled to be opened in 2026, the Sarıyer-Kilyos Tunnel will connect the Maslak-Levent line to the Northern Ring Road, offering an alternative route to the TEM and E5 corridors. The project, designed as a twin-tube structure, includes two tunnels of 7 kilometers each and approximately 1 kilometer of connecting road. By linking the existing Çayırbaşı Tunnel to the Northern Ring Road through the Uskumruköy Junction, the tunnel will significantly reduce the average travel time along the Sarıyer-Kilyos route.
In addition to being a significant step for transportation, the Sarıyer-Kilyos Tunnel is also positioned as a critical route for evacuation and rescue plans in the event of a potential earthquake in Istanbul. By designating the Northern Ring Road as an "Evacuation Route," the Tunnel will enable quick access from densely populated areas to the north of Istanbul, enhancing the safety of lives and property during emergencies. With this strategic role, the Sarıyer-Kilyos Tunnel aims not only to secure transportation routes but also to safeguard the future of Istanbul.