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TAV Concludes Financing for EUR 250m Long Term Loan

On November 30, 2012, TAV EGE Terminal Yapım ve İşletme AŞ (TAV EGE) , a special purpose company owned by TAV Airports, signed loan documents with a group of banks, securing EUR 250m long term project finance facilities for the purpose of building a brand new domestic terminal in Izmir’s Adnan Menderes Airport.

This transaction constitutes a landmark in terms of size, importance and sophistication in the region. The Project is designed to complement the concession of TAV, which already has the right to operate the International Terminal until 2015. TAV Ege will take-over the rights of International Terminal on 2015 and together with Domestic Terminal, will operate the overall terminal facilities of Adnan Menderes Airport until 2032.

European Bank for Reconstruction and Development (EBRD) arranged EUR 70m from the Bank’s own A-loan account, Unicredit and Siemens Bank participated into EBRD’s B-loan with EUR 40m and EUR 35m stakes respectively. Additionally, DenizBank contributed with EUR 65m and Black Sea Trade and Development Bank (BSTDB) with EUR 40m. Financing package comprises of two maturity groups with 15 years and 16 years respectively.

TAV Airports Holding President & CEO M. Sani Sener stated, "As TAV Airports, we are proud to witness the support coming from such esteemed group of financial institutions. Especially the interest shown by foreign lenders in covering 75% of the funding package, is remarkable. As an illustration, EBRD is executing their first Turkish airport financing deal. Maturities provided in the deal are above 15 years which is rarely seen in Turkish debt market. Once again, we are glad to prove the financial institutions’ continuing trust in TAV, Turkish transport sector and the economy. Our goal to pioneer the aviation sector prevails.”

DenizBank CEO Mr. Hakan Ateş stated: “it is a source of pride for us to be the only Turkish Bank contributing to the financing of the new domestic terminal to be constructed in Izmir Adnan Menderes Airport. We believe that the investment to which we participate with a financing contribution of EUR 65 million will provide significant benefit for the tourism of the region and the country. DenizBank will be both the domestic and the international account bank of the said financing transaction in scope of the signed protocol and all cash flow of the project will go through DenizBank A.Ş. and DenizBank AG accounts. Besides, we will open a special branch for Izmir Adnan Menderes Airport and provide all banking services for airport passengers and personnel and assist them in foreign exchange buy/sell transactions. Our Bank which has significant experience in project finance will continue to contribute to these types of projects that add value to our country. I hope that the agreement will be beneficial for all parties and our country.”

Having submitted the best offer at the tender called by DHMI on November 17th, 2011, TAV affiliated company TAV Ege won the operation rights of the domestic terminal until 2032 at a price of 610 million Euros + VAT. Following the takeover of the operation by TAV Airports, the domestic flights were moved to the existing international terminal as of the beginning of the New Year to accommodate the work to be carried out. According to data issued by DHMI, Izmir Adnan Menderes Airport provided service to 9,295,290 passengers last year for an increase of 11 per cent. There are currently direct flights to 119 destinations, including domestic and international flights, in 35 countries from Izmir Adnan Menderes Airport. Adnan Menderes is the sole airport serving Izmir, the third largest city in Turkey after Istanbul and Ankara, and the third largest commercial center in the country. It has a significant industrial base and is responsible for almost 10% of Turkey’s total industrial production. Adnan Menderes Airport is a solid asset that has displayed strong growth over the last decade.
Main features of the terminal:

  • 74 check-in counters
  • 37 elevators
  • 30 escalators and 666 meters of travelators
  • 5,000 bag per hour capacity
  • A total of 291,267 square meter construction area

Deal Info Card:
Signing Date:                                                November 30, 2012
Location:                                                      Izmir, Republic of Turkey
Concession type:                                          21 year concession under a Lease structure
Grantor:                                                       DHMI (State Airports Authority)
Sponsor:                                                      TAV Airports,
Debt Facility:                                                EUR 250.000.000 long term project finance loan
Arrangers:                                                    EBRD, DenizBank, Unicredit, BSTDB, Siemens Bank
Bank Roles:                                                 Unicredit (Coordinating and Structuring Bank)
EBRD (Environmental Bank), DenizBank(Account Bank)
Sponsor’s Legal Adviser:                             Clifford Chance, Sibel Ertekin Law Office
Lenders’ Legal Adviser:                               Latham & Watkins, Fidan & Fidan Law Office
Lenders’ Technical Adviser:                         Mott MacDonald UK