The New İstanbul Airport Receives a 4.5 Billion Euro Loan From Six Banks

 

İGA has signed a loan agreement with Ziraat Bank, Halkbank, VakıfBank, DenizBank, Garanti Bank and Finansbank for the total of 4.5 billion euros for the financing of the first stage of the New İstanbul Airport. The signing ceremony was held with the attendance of President Recep Tayyip Erdoğan, Prime Minister Ahmet Davutoğlu, many high-level bureaucrats, İGA Board Members, and the executives of the banks extending the loan.

The signing ceremony for the first stage loan agreement for the New İstanbul Airport, the biggest project ever to be undertaken in the history of the Turkish Republic, was organized with President Recep Tayyip Erdoğan and Prime Minister Ahmet Davutoğlu attending. Also present at the ceremony were many high-level bureaucrats, İGA Board Members, and executives of the banks extending the loan.

The ceremony was held on the occasion of the signing of a 16-year financial loan agreement between İGA and Ziraat Bank, Halkbank, VakıfBank, DenizBank, Garanti Bank and Finansbank to cover the first stage of investment for the three north-south runways of the airport, which will have a capacity to accommodate 90 million passengers. The investment targets a 6 billion euro undertaking in the first phase; the mentioned loan is planned to finance a 4.5 billion euro portion of the investments to be made in the New Istanbul Airport. It is foreseen that the first stage of the investment, 25 percent of which will be financed with shareholders' equity, will be completed in 2018.

İGA Board Member and Limak Holding Chairman of the Board Nihat Özdemir said at the signing ceremony that work was rapidly underway for the construction of the New Istanbul Airport. Özdemir commented, "We have an expansive goal and that is to make Istanbul and Turkey the hub of the global aviation sector. He continued, "We are undertaking the biggest investment in the history of the Republic without the guarantee of the Treasury. İGA will not only be breaking new records with its investments in the New Istanbul Airport, but it will also be making a significant contribution to the country's economy with the volume of trade it will be generating. As from the date operations begin, we will be contributing an annual 886 million euros + VAT to the state budget, signifying a total of 22 billion 152 million euros + VAT at the end of 25 years. We thank Ziraat Bank, Halkbank, VakıfBank, DenizBank, Garanti Bank and Finansbank for taking on this financial loan, which is the biggest loan of its kind in the history of the Turkish Republic. The presence of Turkish Banks in securing financing for such a huge project is an indicator of the strength of our banking system and the trust Turkey's financial community has in the contractors of the New İstanbul Airport."