Limak wins $831m funding for Kuwait airport work

22/02/2018 05:16 AST

Turkey-based Limak Holding said it has secured a KD249.2 million ($831.3 million) syndicated loan facility from National Bank of Kuwait and Kuwait Finance House for the construction of a new terminal at Kuwait International Airport. Limak Holding and local construction firm Kharafi National had jointly won the deal to build the KIA New Passenger Terminal II after bidding KD1.312 billion ($4.34 billion) for the work.

On completion, the capacity of the airport will grow three-fold to 25 million passengers a year. The terminal is being designed to handle 25 million passengers per year and accommodate all aircraft types through 51 gates and stands.

As per the deal, NBK is the mandated lead arranger, intercreditor agent, security agent and account bank, and KFH is the mandated lead arranger and commodity murabahah investment agent.

The duo will be jointly financing KD124.6 million each to facilitate construction works on KIA New Passenger Terminal II, said Limak Holding chairman Nihat Özdemir said after signing the agreement with NBK Chairman Nasser Musaed Al Sayer and KFH Chairman Hamad Al Marzouk.

Several senior officials including Ayse Hilal Sayan Koytak, the Ambassador of Turkey to Kuwait and her delegation, and senior executives and board members from Limak Insaat, Limak Holding, the NBK, KFH and the Ministry of Public Works took part.

Al Sayer said the NBK's vital role in the financial deal as lead arranger reflects its strong commitment to be the partner of choice for the world’s leading and renowned contractors, executing Kuwait’s multi-billion dollar projects.

"Our journey with Limak actually started in 2016 when we partnered with KFH to issue a Performance Bond on behalf of the company for the much-awaited New Passenger Terminal," remarked Al Sayer.

"Since then, we have been providing the day-to-day banking support to Limak and are delighted to conclude and sign today Limak’s needs for additional banking facilities including bank guarantees, letters of credit and working capital, to the tune of KD249.2 million," he added.

Al Marzouq said: "Under this agreement, we will contribute to the extension of credit lines for the KIA Terminal II project to Limak who have significant experience in establishing international airports."

"The transaction builds on KFH’s growing track-record of financing mega-projects with advanced Sharia’ah-compliant finance solutions spanning four decades," he added.-

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