MIP was established in 2007, when Mersin port was privatized by the Turkish Republic State Railways, through a 36-year concession tender to operate the terminal. The current shareholder structure includes PSA International (PSA, 51%), IFM Global Infrastructure Fund (IFM GIF, advised by IFM Investors, 39%) and Akfen Holding (10%).

PSA is one of the leading global port groups with a network of over 50 coastal, rail and inland terminals in 19 countries in Asia, Europe and the Americas. In 2018, global container throughput of PSA was more than 81 million TEUs. PSA has a robust business and financial profile and is rated Aa1 by Moody’s and AA by S&P. PSA’s flagship operations are in Singapore and Antwerp. In 2018, PSA Singapore handled 36.3 million TEUs and the port of Singapore was ranked the 2nd busiest container port in the world. Drawing on the deep expertise and experience from a diverse global team, PSA actively collaborates with its customers and partners to deliver world-class port services, develop innovative cargo solutions and co-create an Internet of Logistics.

IFM GIF is an open ended fund invested in a diversified portfolio of over 30 infrastructure assets and is advised by IFM Investors, a global fund manager owned by 27 major Australian pension funds whose investment teams in Europe, North America, Asia and Australia manage institutional strategies across infrastructure, debt investments, listed equities and private capital. IFM GIF is one of the largest infrastructure investors in the world, with a strong investment track record of more than 20 years in its asset class. IFM acquired a 39% stake in MIP from Akfen in 2017, which represented its first exposure to the Turkish economy. In addition to MIP, the funds advised by IFM Investors are invested in the ports of New York and New Jersey in the US, the port of Vancouver in Canada, the port of Gdansk in Poland and Port Kembla and Port of Brisbane in Australia.

Akfen Holding is one of the leading players in the infrastructure sector in Turkey and is owned by the Akin family. Akfen has investments in renewable energy, ports, airport operations, real-estate (including hospital PPPs) and mining.

MIP issued its second Eurobond in aggregate principal amount of US$600 million, on November 15, 2019, of which IFC subscribed US$80 million as an anchor investor.

MIP is located in Mersin bay in southern Turkey, at the northeast corner of the Mediterranean Sea. It is the main import and export gateway to the hinterland of central and eastern Turkey for a diversified set of goods. The port plays a key role in the global trade between Turkey and neighbouring countries in the Middle East as well as the Commonwealth of Independent States (CIS) regions. MIP is also at the intersection of major global maritime trade routes.  The port is well connected to major cities in central Turkey and neighbouring countries through highways and railway systems.

This is category B project according to IFC’s Policy on Environmental and Social Sustainability because the project is aimed at refinancing a bond and financing general corporate expenses in a brownfield asset (the port) and will not change the risk profile of the existing investment, involving limited E&S risks which can continue to be mitigated using standard engineering and E&S practices.