Arabtec-led partnership secures Midfield finance
Consortium finalises funding deal for $3bn Abu Dhabi airport contract
Dubai’s Arabtec Holding has announced that its JV consortium with Turkey’s TAV Construction and Greece's Consolidated Contractors Co. (CCC), has secured the bank financing for the $2.94bn contract to build the Midfield Terminal Building at Abu Dhabi airport.
Last week, Arabtec posted a net Q2 loss of $3.2m compared with profits of $8m last year, and analysts have said that the net loss was most likely due to costs incurred by the company as it demobilized resources for the Midfield terminal project.
“The bank credit facilities making up the majority of the amount has been approved,” said Hassan Abdulrahman Al Serkal, executive VP and COO, in a statement posted on the Dubai Financial Market. “These facilities are related to the whole consortium and not only to Arabtec.”
TAV has declared that the finance is 80% Shariah-compliant and is the second major regional project finance venture to rely on Islamic financing facilities this month, after TAV secured a $1.2bn Shariah-compliant facility for Saudi Arabia's Madinah Airport project.
Arabtec has not disclosed a total figure for the finance secured.