Turkey's Limak signs $830m deal to fund Kuwait airport expansion
National Bank of Kuwait and Kuwait Finance House will each provide $411.2m to fund the construction of the $4.2bn terminal
Limak Holding, a Turkish construction company, has signed a credit agreement to help finance the expansion of Kuwait International Airport.
The $830.6m (KWD249.2m) deals have been signed with two local banks, and will be used to build a new terminal, worth $4.2bn (KWD1.27bn) at the airport.
National Bank of Kuwait (NBK) and Kuwait Finance House (KFH) will each provide $411.2m (KWD124.6m) to fund the terminal's construction.
It is expected that the terminal will handle 25 million passengers annually upon completion, and accommodate all aircraft types through 51 gates and stands.
Under the agreement, NBK will act as the mandated lead arranger, inter-creditor agent, security agent, and account bank, while KFH will provide lead arranger and commodity (murabahah) investment agent services.
Nihat Ozdemir, chairman of Limak Holding, signed the agreements with NBK chairman, Nasser Al-Sayer, and KFH chairman, Hamad Al-Marzouq.
Al-Sayer said that NBK's "journey with Limak" started in 2016 through a partnership with KFH, which saw the issuance of a performance bond for the terminal.
He added: "Since then, we have been providing day-to-day banking support to Limak, and are delighted to conclude and sign [agreements that meet] Limak's needs for additional banking facilities, including bank guarantees, letters of credit, and working capital."
Limak is working with Kuwaiti construction firm, Kharafi National, on the project.
The basic structure of Kuwait International Airport's new terminal is 35% complete, a senior government official revealed last November.
Kuwait's Minister of Public Works, Abdulrahman Al-Mutawaa, said construction works were proceeding as scheduled, adding that "a grand project" such as the terminal would require "a considerable amount of time and effort to complete".
Al-Mutawaa also confirmed that the project would be completed in four years, instead of the initial estimated completion of six years.