A&O Shearman Advises on USD 1.15 Billion Project Financing for Turkish Polypropylene Facility

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Allen Overy Shearman Sterling and its Turkish affiliate law firm Gedik & Eraksoy have advised the lenders and a cover provider on the USD 1.15 billion project financing of a greenfield polypropylene production facility in Turkiye’s Adana Province. 

According to A&O Shearman, the financing supports the development, construction, commissioning, operation, and maintenance of the plant, which is a joint venture between Roenesans Holding and Sonatrach Petroleum Investment Corporation, a subsidiary of Algeria’s national oil and gas company. Designed to produce 472,500 metric tons of homo-polypropylene annually, the facility will feature propane dehydrogenation and polypropylene units, along with associated utilities. Notably, it will run on 100% renewable electricity and internally generated hydrogen, enabling a 72% reduction in CO2 emissions compared to traditional production methods.

The A&O Shearman team was led by London-based Partner Lorraine Bayliss.

The Gedik & Eraksoy team included Partner Umut Gurgey, Senior Associate Dilsah Gurses, and Associate Melis Yilmaz.

A&O Shearman did not respond to our inquiry on the matter.