UAE banks ink $1bn Arabtec JV finance deal
Abu Dhabi, October 1, 2012
A consortium of UAE banks led by top lender Mashreq has secured a Dh4-billion ($1.08 billion) financing deal, with a joint venture between TAV-CCC-Arabtec for the construction of midfield terminal building at Abu Dhabi’s International Airport.
The joint mandated lead arrangers for the sharia-compliant syndicated contracting facility are Al Hilal Bank, First Gulf Bank, Mashreq and Union National Bank, while Mashreq and Arab Bank took part in the deal as lead arrangers.
Turkey's TAV Insaat, Dubai's Arabtec Holding and Athens-based Consolidated Contractors Company were awarded a Dh10.8 billion contract in June to build the Midfield Terminal Complex (MTC) in the UAE capital.
The complex is the centerpiece of Abu Dhabi Airports Company’s multibillion-dollar investment program and is expected to go live in the first half of 2017.
The MTC building will be the largest in Abu Dhabi built on a sprawling 700,000 sq m land and is destined to become the primary gateway for airlines operating to Abu Dhabi and will also be home to the UAE national carrier Etihad Airways.
Commenting on the deal, TAV Group president & CEO M Sani Sener said: "Abu Dhabi is investing billions of dollars in infrastructure, real estate and tourism projects as it moves to diversify its economy away from oil. As TAV Construction -the fourth largest company globally in the field of airport construction according to ENR-, we’re proud to contribute to this key project in Abu Dhabi’s future as its contractor."
The TAV Group, he stated, will be transferring the know-how it gained through a number of projects around the world, to Abu Dhabi with this eminent project.
"We’ll provide unparalleled infrastructure to ensure best-quality services in this new terminal, bringing together the latest technology and impressive design," Sener added.
The MTC will be a benchmark in airport construction worldwide featuring an undulating roof, inclined facade, 52 meter of processor ceiling height and the use of advanced technology.
Approximately 84,000 T steel will be used for the construction and the midfield terminal building will have a roof area of 225,000 sq m and a total facade area of 200,000 sq m. Once completed, the terminal will be capable of handling 27 million passengers per year from all around the world.
Julio De Quesada, the head of Corporate Banking Group, Mashreq said, "As a UAE national financial institution joining hands with the leading banks of UAE and the Middle East on this deal, we are proud to be part of this massive and strategically important project in Abu Dhabi, which is the largest single contract awarded in GCC in the first half."
"The Project will have a great impact on the country’s development and underlines the commitment of banks to lend in support of similar key infrastructure projects. We are constantly supporting National projects that contribute to the overall economy and are aimed at achieving the vision of the UAE," he stated.
Sarie A. Arar, the head of Wholesale Banking Group at Al Hilal Bank said, "This transaction is very close to the heart of Al Hilal Bank as it touches upon the very essence of the establishment of our bank which is to help support and promote major infrastructure projects within the UAE with a special emphasis on Abu Dhabi."
"We are delighted to be partners with such respectable companies and banks for this flagship transaction and do hope it will enable the Emirate of Abu Dhabi to continue to be at the forefront of many more ambitious projects in the coming years," he added.
“FGB’s role in this financing is in line with our strategy to support infrastructure development projects in the UAE, and particularly in Abu Dhabi. The new MTC will aid in supporting the emirate's economy through creating new job opportunities, in addition to enhancing its transport sector," remarked George Abraham, the group head of corporate banking, FGB.
"It will work towards consolidating Abu Dhabi’s position as a travel and business hub, meeting the vision of our leaders," he added.
Mohammed Nasr Abdeen, the UNB chief executive officer said, "The construction of the new MTC will help significantly boost the economy of the country and in getting more visitors to the country as well as providing greater convenience to residents of the UAE."-TradeArabia News Service
More Finance & Capital Market Stories
- Barclays advises on equities over bonds
- World Bank boosts funds for Syria refugees
- Doha Bank sets $1.5bn to fund Emirati SMEs
- Gold gains on China demand
- HSBC to launch insurance products in UAE
- Bahrain to host key Arab exchange talks
- QNB to start India operations
- Gulf must consider flexible exchange rate: banker
- Productivity, trade 'key to Bahrain growth'
- Arqaam Capital advises Magrabi on key acquisition