Turkey: Antalya Airport Expansion Project

approved

The Project comprises three components: Terminal Works: expansion of International Terminal 2, Domestic Terminal and related carparks; Airside Works: additional apron space and taxiways, infrastructure works for new maintenance hangar area, cargo terminal; and Other Works: gates, landscaping, on-site solar farm, and others. The Project will increase the annual capacity of the Antalya Airport (the “Airport”) from 40 million passengers to 80 million passengers in three phases. At the end of 2021, the Sponsors won the tender and signed the new lease agreement with the Turkish State Airport Authority to develop and operate the Airport. The Sponsors have operated the Airport under the current lease agreement since 2007. Pursuant to the lease agreement, the Sponsors are required to make an upfront payment amounting to 25% of the total rental fee. As such, they have entered into a 2-year loan facility with a syndicate of commercial banks. The Sponsors are now arranging similar loan facilities to finance the capital expenditure for the expansion works from commercial banks and multilateral development banks. The short-term loan facilities are expected to be refinanced in March 2024 via a long-term project financing loan.