Fraport-TAV seeks up to $1.7 billion loan for Antalya Airport

The German-Turkish joint venture that won a contract to run Turkey’s second-busiest airport in Antalya is seeking to borrow as much as 1.5 billion euros ($1.7 billion) to finance the down payment, according to people with knowledge of the matter.

Turkey’s TAV Havalimanlari Holding AS and German partner Fraport AG will set up a special purpose vehicle company to sign the airport contract with the Turkish airport authority known as DHMI, said people, who declined to be named because discussions are private.

TAV declined to comment. Fraport AG didn’t immediately respond to a request for comment.

The joint venture will have three months to make the payment after the lease is signed with DHMI and is in talks with Turkish banks for the financing, the people said. It won the contract to run the Antalya airport for 25 years with a 7.25 billion euro offer, the second biggest on record for such a deal in Turkey.

In addition to making a 25% down payment, Fraport and TAV also agreed to invest 765 million euros to boost the airport’s capacity to 80 million passengers from 35 million now with additions to the international terminal.

TAV, which is majority is owned by Aeroports de Paris, operates several airports in Turkey including in the capital, Ankara, and the western city of Izmir along with the tourist resort of Bodrum. It also has facilities in Georgia, Tunisia and Saudi Arabia, among other locations.