10 February 2020, Monday 20:40:59

Istanbul Airport in Talks With Chinese Banks on $6 Billion Loans

The operator of Istanbul’s giant new airport is in talks with Chinese and Gulf lenders to refinance 5.7 billion euros ($6.2 billion) of existing loans.

The operator of Istanbul’s giant new airport is in talks with Chinese and Gulf lenders to refinance 5.7 billion euros ($6.2 billion) of existing loans.

IGA, as the company is known, is seeking to complete a deal in the first half, it said in an emailed response to questions. The company wants to take advantage of its strong cash flows and decreasing construction expenses to lower financing costs.

“European banks are also showing interest,” IGA said, without identifying any lenders.
The company said in November it’s working with London-based Dome Group Financial Services on the deal. The refinancing will help IGA cut its annual interest burden “significantly,” it said at the time.

The operator got the original funding to build the airport from TC Ziraat Bankasi AS, Turkiye Halk Bankasi AS, Turkiye Vakiflar Bankasi TAO, Denizbank AS, QNB Finansbank AS and Turkiye Garanti Bankasi AS in 2015 and 2018. Both loans mature in 2031, according to data compiled by Bloomberg.

IGA has to pay a total 22.1 billion euros, or 1.1 billion euros a year, for the 25-year contract to operate the airport, with annual lease payments of 1.1 billion euros starting this year. The company will make an extra payment of 22.4 million euros to the government after proceeds from international passengers exceeded state guarantees during the first nine months of operations in 2019, IGA said last month.

Istanbul Airport in Talks With Chinese Banks on $6 Billion Loans

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