Antalya Airport expansion project secures €140m bridge loan from EBRD

Antalya Airport expansion project secures €140m bridge loan from EBRD

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has provided a €140 million capex bridge loan to Fraport TAV Antalya Yatirim for the Antalya Airport expansion project in Turkey. The loan is part of a financing package that also includes funds from the International Finance Corporation and the Asian Infrastructure Investment Bank. The investment will enable the airport’s new infrastructure to be completed while ensuring improvements in energy efficiency. The project will include green investments such as LEED certified terminals and a solar power plant. The airport has committed to obtaining the Level 4 “Transformation” accreditation under the Airport Carbon Accreditation scheme, putting Antalya Airport in the top tier of airports globally in terms of carbon management and stakeholder engagement.

(PRESS RELEASE) LONDON, 31-MAR-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is providing a €140 million capex bridge loan to Fraport TAV Antalya Yatirim, Yapim ve Isletme (FTA) in Türkiye. It is part of a financing package that includes funds from the International Finance Corporation (IFC) and Asian Infrastructure Investment Bank (AIIB).

The EBRD’s investment is expected to enable the airport’s new infrastructure to be completed, while ensuring improvements in energy efficiency.

The project will include green investments such as LEED certified terminals and a solar power plant. As part of the transaction, the airport has committed to obtaining the Level 4 “Transformation” accreditation under the Airport Carbon Accreditation scheme. Achieving this level of accreditation will put Antalya Airport in the top tier of airports globally in terms of carbon management and stakeholder engagement.

FTA has also committed to inclusive procurement to increase the share of women within its contractor workforce.

FTA is a joint venture between global airport operators Fraport AG Frankfurt Airport Services Worldwide (Fraport) and TAV Airports Holding (TAV Airports) that has been awarded a 25-year concession to operate Antalya Airport starting from 2027. The airport is currently operated by the same sponsors under an existing concession that expires at the end of 2026.

Antalya Airport is the gateway to a major Mediterranean leisure destination, and serves as the entry point to the wider region’s international tourism industry. By increasing the airport’s passenger capacity, which is currently operating near capacity, the region will be able to enhance its share of tourists from key markets and develop the industry in general, which is critical for the economy as tourism is a key source of revenue. Works will include expanding passenger terminals, boosting the number of apron spaces and taxiways, and creating additional service facilities.

Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, welcomed the deal. “Antalya Airport is a key part of the infrastructure needed to grow the tourism sector and the economy in Türkiye,” she stated. “As the EBRD, we welcome FTA’s efforts to make their operations greener and more diverse as they strive towards a more sustainable future. We are confident that this loan and the planned improvements will allow Antalya Airport to become a standard-bearer and leading light in the aviation sector.”

TAV Airports Deputy CEO and CFO Burcu Geris said: “Antalya has time and again shown that it is a very high-demand and resilient tourist destination in the Mediterranean basin owing to a long tourism season, excellent quality of service and attractive pricing. As such, we feel very privileged to be in a position where we can help the city’s tourism sector continue to grow until 2052.  This loan will contribute to the capacity investments in the airport which have been planned to serve Antalya for another 25 years of growth. Ongoing investments will strengthen Antalya’s position as a leading airport in the region in terms of environmental protection and create increased value for stakeholders and local communities for years to come.”

Fraport’s Vice President, International Activities and Services, Michael Reusch, explained: “Fraport strategically focuses on developing airports over the long term. At Antalya Airport we have been active for over two decades now. When we entered the project the airport handled fewer than 5 million passengers a year. In 2022 more than 30 million passengers were using Antalya Airport from all over the world, which underpins the attractiveness of the Antalya region as a tourist hotspot: Antalya Airport is today the number one gateway to the picturesque south coast of Türkiye. To accommodate future demand it is necessary to develop the airport sustainably in accordance with international standards. We are proud to continue contributing to such a success story with know-how and resources gathered from Germany.”

The EBRD is a leading institutional investor in Türkiye. Since 2009 the Bank has invested nearly €17 billion in various sectors of the country’s economy, with almost all investment in the private sector.

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SOURCE: EBRD