The consortium building Abu Dhabi’s new airport terminal is close to securing a four billion dirhams ($1.1bn) financing deal, which will be mainly sharia-compliant, banking sources said yesterday.
A deal would mark the second major regional project finance venture to rely on Islamic financing facilities this month.
Turkey’s TAV Insaat, Dubai’s Arabtec Holding and Athens-based Consolidated Contractors were awarded a $2.9bn contract in June to build a mid-field terminal in the emirate.
Dubai lender Mashreq is leading the financing deal which includes First Gulf Bank, Union National Bank, Al Hilal Bank, all from Abu Dhabi, and Jordan’s Arab Bank, said two banking sources close to the deal
The financing will be 80 per cent sharia-compliant with the remainder secured via a conventional loan, the sources said.
The four-year contractor finance facility will see all banks provide roughly equal amounts.
An official at Tav Airports confirmed the use of Islamic financing but declined to give further details on the deal.
TAV Insaat is a unit of Turkish builder Akfen Holding, which holds a stake in airport operator TAV Havalimanlari.
It marks the second time this month that TAV has turned to Islamic finance to fund its joint projects in the region.
Last week, a consortium including TAV said it had secured a $1.2bn Sharia-compliant facility for Saudi Arabia’s Medina Airport project. The Medina Airport project, which also includes Saudi Oger and Al Rajhi Holding Group, is slated to be completed in the first half of 2015.