One of the longest-term loans in Turkey by ABN AMRO Bank N.V. & Yapı Kredi Bank
€ 336 MILLION PROJECT LOAN GRANTED TO ISTANBUL SABİHA GÖKÇEN
Istanbul Sabiha Gökçen International Airport Investment Development and Operation Inc. (ISG) has acquired a project loan worth of 336 million Euros, in pursuance of the transfer of operations in the Airport and within the context of the related item on the company’s agreement with the Undersecretariat for Defence Industries. The loan, granted by a consortium founded with 50-50 partnerships between ABN AMRO Bank N.V. and Yapı Kredi Bank will be repaid according to a 13.5-years payment plan with five years of non-payment period.
Istanbul, June 25th, 2008 - ISG, which took on the 20 - year operation rights of Istanbul Sabiha Gökçen International Airport on May 1st, 2008, has signed the agreement with ABN AMRO Bank N.V. and Yapi Kredi Banks, for a loan of € 336 million credit.
The credit, in accordance with the related articles of the agreement that has been signed between ISG and the Undersecretariat for Defense Industries will be used for the terminal and ground operations at the airport, as well as the construction of the new international terminal building and its supportings.
ABN AMRO Bank N.V. and the Yapı Kredi Bank, the 50 – 50 partners of the consortium, founded for this purpose, have made a payment plan with a 13.5 years period, foreseeing five years without payment. The loan carries one of the longest options in Turkish finance history. Another finance enterprise, Bank Asya A.Ş. has issued the performance bond worth of 118 million Euros, also required in accordance to ISG’s agreement with the Undersecretariat for Defense Industries.
ABN AMRO Bank N.V. Country Executive, Douglas Kennedy, Yapı Kredi CEO Tayfun Bayazıt, Limak Holding and ISG Board Member Ebru Özdemir, ISG Board Member & GMR International CEO Ranjit Murugason and İSG Board Member & GMR Turkey CEO Cenk Alpsoy, as well as ISG CEO Yetik K. Mert have participated the signing ceremony.
“This loan is an indication of the trust in our company and the Turkish economy,” said Yetik K. Mert at the ceremony, “This level of trust enhances our power, as we move towards our target of making Istanbul Sabiha Gökçen one the world’s leading airports.”
ABN AMRO Bank N.V. Country Executive, Douglas Kennedy said: “We are honored to act as one-of-two Joint Bookrunners in the Istanbul Sabiha Gökçen International Airport transaction as its a further milestone in, and further evidence of, Turkey’s ongoing transportation and infrastructure improvements. This large and long dated financing reflects our commitment to, and belief in, both the strong domestic and international Istanbul Sabiha Gökçen International Airport consortium partners and to the Turkish economy as a whole.”
Meanwhile, Yapı Kredi Bankası CEO Tayfun Bayazıt said that they were proud to be one-of-two Bank Runners of a loan that carries one of the longest options in Turkey, and to take a supporting part in a project that would help carrying the increasing load of incoming and outgoing travellers at İstanbul, which is on its way to become one of the most important commercial and cultural mega cities in the world. Bayazıt further said that Yapı Kredi Bankası was increasing its involvement in financing the privatization and acquisition projects in the last two years. He added adding that they were intending to go on financing projects using the strong capital structure of Yapi Kredi as well as the network of banks within their shareholder, The UniCredit Group.
The new terminal and its facilities will have 96 check – in counters, 30 online check - in counters, a total of 32 X – ray units and two – storey VIP terminal. There will also be a three – story car park with a capacity for about 5,350 vehicles (4,500 indoors and 850 outdoors). A hotel with 60 rooms, adjacent to the terminal, will also be built for flight crews, transit and other passengers. The new terminal building to be built will also feature Turkey’s first multi aircraft parking system, allowing simultaneous service to 8 D-E type aircrafts with large fuselages and 16 C type middle sized fuselage aircrafts.