Contractors close to $1.1b UAE deal

The consortium building Abu Dhabi’s new airport terminal is close to securing a Dhs4 billion ($1.1 billion) financing deal, which will be mainly sharia-compliant, banking sources said on Wednesday. Turkey’s TAV Insaat, Dubai’s Arabtec Holding and Athens-based Consolidated Contractors Co. were awarded a $2.9-billion contract in June to build a mid-field terminal in the emirate. The contract was signed with the group that includes Turkey’s TAV Insaat, Athens-based Consolidated Contractors Company and Dubai’s Arabtec, a statement from operator Abu Dhabi Airports Company (ADAC) said. Construction of the complex will begin in the third quarter and is expected to be concluded in 2017. The 700,000 sqm terminal building is one of the key strategic infrastructure projects to be undertaken in the UAE capital, and will initially handle 30m passengers per year. It will be the future home of Abu Dhabi’s Etihad Airways. Dubai lender Mashreq is leading the financing deal which includes First Gulf Bank, Union National Bank, Al Hilal Bank, all from Abu Dhabi, and Jordan’s Arab Bank, said two banking sources close to the deal who declined to be identified. The financing will be 80 per cent sharia-compliant with the remainder secured via a conventional loan, the sources said. The four-year contractor finance facility will see all banks provide roughly equal amounts.   From:Gulftoday