Contractor financing closed for Midfield Terminal

12 August 2012

Turkish consortium agrees $1.1bn Midfield Terminal contractor financing deal

A consortium led by Turkey’s TAV has completed a AED4bn ($1.1bn) contractor financing deal for the construction of the Midfield Terminal at Abu Dhabi airport.

All the funds are in place and the terms agreed, although a final signing to mark the conclusion of the contract is not expected to occur until early September, according to sources close to the deal.

The debt is split between several tranches, including loans and bonds, with tenors ranging from four to seven years. The financing includes a portion of Islamic loans, although most are understood to be conventional loans.

TAV, along with Athens-based Consolidated Contractors Company (CCC) and the local Arabtec Construction, were named preferred bidders for the AED10.55bn contract in May. The project, the largest single contract award in the GCC in the first half of 2012, involves the construction of a new terminal between the two existing runways at Abu Dhabi airport.

There are eight banks on the deal, led by Dubai-based Mashreq. Most of the other banks are based in the UAE, except for Jordan’s Arab Bank, which is also a lender for the project. Other lenders include Al-Hilal Bank, which is lending on the Islamic tranche, First Gulf Bank and Union National Bank.

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