Allen & Overy Secures $1.15 Billion Financing for Turkish Polypropylene Plant
Deal News | May 16, 2025 | CEE Legal Matters
Allen & Overy Shearman Sterling, in collaboration with its Turkish affiliate law firm Gedik & Eraksoy, played a pivotal role in securing the USD 1.15 billion project financing for a greenfield polypropylene production plant in the Adana Province of Turkey. The financing arrangement supports a joint venture between Roenesans Holding and Sonatrach Petroleum Investment Corporation, aiming to construct and operate a facility capable of producing 472,500 metric tons of homo-polypropylene annually. The plant will utilize innovative technologies, including propane dehydrogenation and polypropylene units, and will be powered by 100% renewable electricity as well as hydrogen generated internally. This sustainable energy model is expected to reduce carbon emissions by 72% compared to conventional methods, marking a significant stride towards eco-friendly industrial operations. The legal advisory teams led by A&O Shearman's London-based Partner Lorraine Bayliss and Gedik & Eraksoy's Umut Gurgey, with support from their associates, underscore a major international collaboration in clean-energy infrastructure development.
Sectors
- Project Finance
- Legal Advisory
- Chemical Manufacturing
- Renewable Energy
Geography
- Turkey – The polypropylene production facility is located in Turkey's Adana Province.
- United Kingdom – Allen & Overy Shearman Sterling, a key participant, has its advisory team headquarters in London.
- Algeria – Sonatrach Petroleum, a JV partner, is a subsidiary of Algeria's national oil and gas company.
Industry
- Project Finance – The article details a major project financing arrangement for the development and operation of an industrial facility.
- Legal Advisory – Legal advisory services play a central role in the structuring and negotiation of the financing deal.
- Chemical Manufacturing – The facility is designed to produce polypropylene, a key industrial and consumer plastic.
- Renewable Energy – The plant is notable for its use of 100% renewable electricity and internal hydrogen generation.
Financials
- USD 1.15 billion – The total project financing amount for developing the polypropylene facility.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Allen & Overy Shearman Sterling | Legal Advisor | Company | An international law firm providing legal services for the financing deal. |
| Gedik & Eraksoy | Legal Advisor | Company | Turkish affiliate law firm of A&O involved in advising the lenders. |
| Roenesans Holding | Joint Venture Partner | Company | A lead partner in the joint venture managing the development of the facility. |
| Sonatrach Petroleum Investment Corporation | Joint Venture Partner | Company | A subsidiary of Algeria's national oil and gas company participating in the joint venture. |
| Lorraine Bayliss | Lead Legal Advisor | Person | A&O Shearman's London-based Partner. |
| Umut Gurgey | Legal Advisor | Person | Partner at Gedik & Eraksoy. |
| Dilsah Gurses | Legal Advisor | Person | Senior Associate at Gedik & Eraksoy. |
| Melis Yilmaz | Legal Advisor | Person | Associate at Gedik & Eraksoy. |