EUR 162 million bank loan from DenizBank to TAV for Milas-Bodrum Airport
TAV signed an agreement with DenizBank for its subsidiary, TAV Milas Bodrum Terminal İşletmeciliği A.Ş (TAV Milas Bodrum) to obtain EUR 162 million of long-term bank loan.
TAV Airports has signed a long-term bank loan agreement of EUR 162 million with DenizBank for TAV Milas Bodrum Company, which it founded for the operation of Milas-Bodrum Airport.
TAV Airports President & CEO Sani Şener stated: "We are glad that we signed a long-term bank loan agreement of EUR 162 million with DenizBank for Milas-Bodrum Airport, which is an important hub of our country. This transaction constitutes a landmark deal in terms of size, importance and serving multiple purposes in the region as a company which operates 14 airports and provides services at 54 airports world-wide together with its service companies. In July 2014, TAV Milas Bodrum took over the domestic terminal's operations from DHMI. Our company will also take-over the rights of International Terminal on October 2015 from the current airport operator. Together with Domestic Terminal, TAV will operate the overall terminal facilities of Milas-Bodrum Airport until end of the 2035. We believe that Bodrum will become the fourth largest city in Turkey within the next 20 years. We are collaborating with all of our stakeholders in order to create a tourism activity all year round. I would like to express my sincere thanks to DenizBank for supporting us with long-term finance loan having confidence in our projects and wish that our financial collaboration would last in our future projects."
Commenting on the subject, DenizBank General Manager Hakan Ateş expressed: “DenizBank especially focuses on infrastructure projects and financing of the projects within its fields of activity because they constitute the transition economies of our country. Providing finance for Milas – Bodrum Airport project is of high importance for us as it is located in a region which is the attraction center of tourism sector that plays a strategic role in the development of our economy and 2023 vision. We consider Bodrum as an investment destination of critical importance, which reflects the tourism potential of our country both in local and international market in terms of its natural beauty and special location. I am glad of our collaboration with TAV, which is a notable representative of our country at home and abroad. I believe that the project will significantly contribute to the development of the tourism of the region and Turkey."
DenizBank A.Ş. Bahrain Branch contributed with EUR 74.5 million and DenizBank A.Ş. Bahrain Branch with EUR 79.5 million. Financing package is arranged with a maturity of 16 years. For the bank loan package, Denizbank was advised by Latham & Watkins, Akol & Çakmak and Intervistas, while TAV was advised by Clifford Chance and Sibel Ertekin.
TAV Airports operates Izmir Adnan Menderes and Gazipaşa-Alanya airports besides Milas-Bodrum Airport which provide services to main tourism centers in Aegean and Mediterranean regions. Milas-Bodrum Airport, which has an annual passenger volume of circa 3.9 million, provides services to world-renowned touristic centers. Milas-Bodrum Airport had grown at an average of 15% in 1997-2004 period and 8% over 2003-2014 period annually.