Financed ProjectsTAV Izmir Airport-Project Finance Facil

Identification Code:

OP/11/0868

Total Operation Cost:

250.000.000

Maturity:

192 months

Operation Status:

Description and Purpose of the Operation:

Provision of a project finance facility to a special purpose vehicle, TAV Ege to: 1. Demolish the existing domestic terminal and procure, design, engineer and construct a new domestic terminal building and its complementaries (i.e. new access road, multi storey car park and open car park) in Adnan Menderes Airport in Izmir Turkey; 2. Renovate the international terminal; 3. Operate and maintain the Adnan Menderes Airport domestic and international terminals in accordance with the international norms and standards under the provisions of the Lease Agreement until the end of 2032.

Countries of Operation:

Türkiye (100,00 %)

Financial Product:

Loans

Sector:

Industrials

Domain:

Private

Borrower/Client:

TAV Ege Terminal Yatirim Yapim ve Isletme A.S.. Turkey, an SPV incorporated by the TAV Airports Holding

Co-Financiers/Participants:

EBRD: EUR 70 million A loan; Unicredit: EUR 40 million B loan under EBRD; Siemens Bank: EUR 35 million B loan under EBRD; Denizbank: EUR 65 million commercial loan

Guarantors/Sponsors:

TAV Airports Holding Inc. (TAV Havalimanlari Holding A.S.), Turkey

Developmental and Regional Cooperation Impact:

The expansion of the airport infrastructure in a rapidly growing economy, such as that of Turkey, should have positive effects on further growth and development of the greater Izmir region’s economy. Directly, there are positive benefits from the investment of an estimated EUR 423 million to construct the new terminal and then the expected benefits from its operation by TAV over its useful life. The operation should also have impact on new job creation, including relatively skilled jobs. Indirectly, key benefits of transport infrastructure are the broader economic growth it facilitates in the region where located. Given the importance of tourism in the Izmir region, these benefits could be substantial since quality airport infrastructure is critical to foster and sustain tourism over the long term.

Environmental Classification and Impact (summary):

In addition to the obvious positive socio-economic impacts such as generation of employment opportunities, increased tourism in the area, and higher standards of travel, the operation will also help the Borrower to improve its corporate EHS management system and performance standards, which will prove beneficial for its future operations and will place TAV on a higher EHS performance level.

Operation Leader:

General Industries, Transport, Tourism 2

E-mail:

gitt2@bstdb.org