AIIB Extends EUR140 Million to Enhance Türkiye's Antalya Airport Expansion

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Asian Infrastructure Investment Bank (AIIB)

Apr 17, 2023, 09:40 ET

BEIJING, April 17, 2023 /PRNewswire/ -- The Asian Infrastructure Investment Bank (AIIB) has signed a EUR140-million loan with Fraport TAV Antalya Yatirim, Yapim ve Isletme (FTA) for the expansion and modernization of Antalya's Airport in Türkiye to improve airport service and the availability of travel options.

This capex bridge loan will facilitate greater cross-border connectivity between Europe, Asia and other destinations. It also marks AIIB's inaugural non-sovereign backed financing transaction in the airport industry, bringing its global leadership in developing sustainable and energy efficient transport infrastructure to the aviation industry. Once completed, the extension of the Antalya Airport will improve utilization of existing runway capacity and higher-quality terminal infrastructure while easing transportation constraints.

"The Antalya Airport is a gateway to tourism in Türkiye," said Konstantin Limitovskiy, AIIB's Vice President for Investment Operations (Region 2: Pakistan, Afghanistan, Central Asia, East Asia, West Asia, Europe, Africa and Latin America). "This project is aligned with AIIB's Transport Sector Strategy and thematic priorities of Green Infrastructure, Connectivity and Regional Cooperation and Private Capital Mobilization. This is AIIB's first solid entry into the sustainable aviation market and it will boost the tourism-dependent economic health of Antalya region locally. It will also contribute to Türkiye's economic recovery from recent financial shocks and local natural disasters while enhancing global cross-border connectivity."

AIIB's financing package is provided in partnership with the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) (collectively the multilateral development banks (MDBs). In addition to the improvement of Antalya Airport's operational efficiencies, this collaboration will support the adoption of international environmental, social and governance (ESG) standards and climate change mitigation and adaptation efforts.

FTA, a joint venture between global airport operators Fraport AG Frankfurt Airport Services Worldwide and TAV Airports Holding, will meet the MDBs' ESG standards by committing to develop capacity for inclusive and gender-responsive procurement with the goal of increasing women's participation at the contractor level. The project will reduce greenhouse gas emissions by introducing low-carbon measures in compliance with LEED green building standards, which AIIB will also monitor as part of the project's intermediate indicators. These measures will also include the construction of an on-site solar farm and other various energy efficiency initiatives, which will rank the Antalya Airport among the top best carbon management airports in the world, as it aims to achieve carbon neutrality by 2050.

AIIB has been active in Türkiye since 2018 and has committed over USD3.9 billion through 19 projects covering the water, energy, urban, transport and healthcare sectors across the Turkish market.

More information about the project can be found here.

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 106 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Working with partners, AIIB meets clients' needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.