Financial closure for GMR’s Turkey project

Hyderabad: Istanbul Sabiha Gokcen Airport (Turkey), which is being expanded with a GMR-led consortium, has achieved financial closure, with ABN Amro Bank NV and Yapi Kredi Banks agreeing to give a loan of €336 million for the project.

The credit would be used for the terminal and ground operations at the second airport of Istanbul. The funds would also be used for building the new international terminal building, Mr Yetik K. Mert, Chief Executive Officer of the airport, said.

Limak Holding (Turkey) and GMR Infrastructure holds 40 per cent each in the airport project, with Malaysia Airports Holdings Berhad owning the remaining stake in the airport project.

The ABN Amro and Yapi Kredi Bank, partners in the 50:50 consortium, agreed for a 13.5-year payment plan.

“The loan carries one of the longest options in Turkish finance history. Another finance enterprise Bank Asya has issued the performance bond worth €118 million,” a press release said.

Top executives of banks and Mr Ranjit Murugesan, Chief Executive of GMR’s International Business Division, were present at the signing-in event held at Istanbul.

The ISG, which won the bid to develop the airport, has been asked by the Turkish Government to complete the expansion and building the new terminal by October 2009. Work on the site had begun in the first week of May 2008.