Abu Dhabi Airport Terminal Financing Approved

August 14, 2012

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Dubai's Arabtec said on Tuesday that the builder, along with its consortium of Turkish and Greek entities, has secured necessary financing for the USD$2.9 billion contract to build Abu Dhabi's new airport terminal.

"Credit facilities (for the project), which are mostly bank guarantees, have been approved," Arabtec said in a statement on the Dubai bourse.

"These facilities are related to the whole consortium and not only to Arabtec."

Arabtec did not state the value of the bank financing.

The consortium comprising Arabtec, Turkey's TAV Insaat and Athens-based Consolidated Contractors, were close to securing a AED4 billion dirhams (USD$1.1 billion) financing deal, which will be mainly sharia-compliant, last week.

Dubai lender Mashreq is leading the financing deal which includes First Gulf Bank, Union National Bank, Al Hilal Bank, and Jordan's Arab Bank, two banking sources had said.

The financing will be 80 percent sharia-compliant with the remainder secured via a conventional loan, the sources said.

The consortium were awarded the USD$2.9 billion contract in June to build a mid-field terminal in the emirate.

(Reuters)