AIIB gives $152m loan to Turkey Airport

The Asian Infrastructure Investment Bank (AIIB) has approved a €140 million (USD 153.66 million) loan to the operator of Antalya airport in Turkey, according to a statement released on Monday. The funds will be used to increase the airport’s runway capacity and terminal infrastructure, enabling it to accommodate the rising number of tourists visiting Turkey’s Mediterranean coast. The loan, which will be repayable in two years, is the AIIB’s first non-sovereign-backed financing transaction in the airport industry.

The expansion of Antalya airport is part of Turkey’s ongoing investment in infrastructure development, with a particular emphasis on transport. The country’s government is hoping to capitalize on the growth of its tourism industry, which has been a major driver of economic expansion in recent years. Antalya airport is a key gateway for visitors to the Mediterranean coast, and the expansion will help to facilitate the influx of tourists.

The AIIB’s loan will include both senior secured and subordinated loans, with the bank providing the senior secured loan. The financing package is being provided in partnership with the International Finance Corp., a unit of the World Bank Group, and the European Bank for Reconstruction and Development. The loan is intended to bridge the gap until a longer-term financing solution can be arranged.

The AIIB’s first non-sovereign-backed financing transaction in the airport industry highlights the bank’s commitment to infrastructure development in emerging markets and its capacity to offer creative financial solutions to its clients. The partnership with the International Finance Corp. and the European Bank for Reconstruction and Development further underlines the bank’s collaborative approach to infrastructure financing. The project is expected to create jobs in the region and support the overall economic growth of Turkey.