The refinancing will help IGA cut its annual interest burden significantly/Bloombergby Bloomberg
The operator of Istanbul’s giant new airport is in talks with Chinese banks led by Industrial & Commercial Bank of China (ICBC) to refinance EUR 5.7 billion ($6.2 billion) of existing loans.
IGA, Turkey’s largest airport stated that it is seeking to complete a deal in H1 2020, citing strong interest from China and the Gulf region without naming any institution.
The company wants to take advantage of its strong cash flows and decreasing construction costs to lower financing costs. European banks are also showing interest, said IGA.
In November 2019, the company said that it is working working with London-based Dome Group Financial Services on the deal. The refinancing will help IGA cut its annual interest burden significantly.
The operator got the original funding to build the airport from Ziraat Bankasi, Turkiye Halk Bankasi, Turkiye Vakiflar Bankasi, Denizbank, QNB Finansbank and Turkiye Garanti Bankasi in 2015 and 2018 and both loans mature in 2031.
IGA has to pay a total EUR 22.1 billion or 1.1 billion euros a year, for the 25-year contract to operate the airport, with annual lease payments of EUR 1.1 billion starting this year. The company will make an extra payment of EUR 22.4 million to the government after proceeds from international passengers exceeded state guarantees during the first nine months of operations in 2019, added IGA.