Chase Manhattan Bank is arranging three additional financing packages for motorway and natural gas distribution contracts and the project financing for the construction of a textile plant in Uzbekistan by the local Tekfen.
A financing package valued at about $35 million for work on the Tarsus to Mersin motorway has been submitted to the treasury for approval. The deal will finance the construction of viaducts and cost overruns of the original $250 million construction contract (MEED 23:12:94).
The contractor is the local Dogus with Contur, a subsidiary of Italy’s Astaldi. A commercial financing portion valued at about $10 million will be for three years, and the remainder, in export credits covered by Italy’s official export credit agency SACE, will be for 11 years.
Chase is also arranging financing of about $54 million for the Mersin to Gaziantep motorway under construction by Tekfen.
Additionally, Chase is putting together financing valued at $15 million including export credits backed by SACE for the conversion and expansion by the local Alarko with Italy’s Bonatti of Bursa’s gas distribution network to take imported natural gas. Pricing for all these financing packages has not been disclosed.
Chase is also arranging a financing package valued at about $37 million, partially covered by German export credit agency Hermes, for the construction of a textile plant in Uzbekistan by Tekfen. With an overall term of five years, the deal is priced at 11/4 per cent over the London interbank offered rate (Libor). It is awaiting final approval by the Uzbek authorities.